New York – Marking a major victory for CEO Tim Armstrong, AOL shareholders on Thursday re-elected all eight of the company’s incumbent directors, rejecting a trio of candidates sponsored by dissident investor Starboard Value.

Investor reaction drove the share price down by about 6 percent at midday. Click here  [AOL] for the latest price.

The New York-based hedge fund, which has publically criticized Armstrong over his business strategy, had sought to shake up the board.

“Today’s outcome reaffirms our strong belief that AOL has the right strategy and team to successfully execute on our plan to continue to deliver enhanced value for all stockholders,” AOL said in a statement, adding that the company also plans to add two new independent directors.

Those re-elected included Armstrong, Richard Dalzell, Karen Dykstra, Alberto Ibargüen, Susan Lyne, Patricia Mitchell, Fredric Reynolds and James Stengel.

This article was also published in Potomac Tech Wire.

Related links:

AOL – press statement

Bloomberg – AOL Drops After Warding Off Challenge From Starboard

Reuters – AOL shareholders re-elect board, defeat activist

CNN Money – AOL chief gets re-elected, investors say boo

 Photo by Flickr user Jason Persse, used under Creative Commons license