The Yahoo! board of directors has reshuffled its leadership, naming company founder Jerry Yang as the new CEO and giving current boss Terry Semel, who resigned from his CEO post, the rank of non-executive chairman.

Semel had until recently served as both chairman and CEO.

The board also named Sue Decker, former executive vice president, as president.

Board Director Ed Kozel praised Semel for his service, saying, "The entire Board appreciates the vital role Terry has played in making Yahoo the internet leader it is today."

Although Yahoo has taken some hits lately, and analysts have called on the board to drop Semel, the former chief said the move was planned.

"The Board and I have long talked about the importance of ensuring a smooth succession in Yahoo's senior leadership -- and more recently, about the need for a leadership team committed to carrying Yahoo through its multi-year transformation," Semel said in a statement. "As we discussed my future goals and plans, I was clear in telling the Board of my desire to take a step back sooner rather than later. I believe Jerry and Sue, with their superb talents and intense dedication to Yahoo and its people, are the perfect combination to carry us forward. This is the time for new executive leadership, with different skills and strengths, to step in and drive the company to realize its full potential -- it is the right thing to do, and the right time is now."   

Semel recently faced his critics at a shareholder meeting. At the meeting, some board members were re-elected with an uncharacteristically low number of votes.