Yahoo added four new directors to its board in a settlement with activist investor Starboard Value, the company announced Wednesday.

Starboard CEO Jeffrey Smith will join Yahoo's board immediately, joined by M&A banker Tor Braham, media executive Eddy Hartenstein and technology executive Richard Hill, the company said. Two current independent directors, Lee Scott and Sue James, opted not to stand for re-election as part of the move.

The board will also shake up its structure, with Braham joining the audit and finance committee, Smith and Hartenstein joining the compensation and leadership development committee, and Hill joining the nominating and corporate governance committee, the statement said. Maynard Webb will continue to serve as chairman of the now-11-member board. "This constructive resolution will allow management and the board to keep our focus on our extremely important objectives. Management is looking forward to working with the entire board, including the new directors, to maximize shareholder value," , CEO of Yahoo, said in a statement. Yahoo shares closed down 0.43 percent Wednesday.