Filo, who founded Yahoo in 1994 with Stanford University friend Jerry Yang, sold 98,812 shares for an average of $30.20 a share. The sale amounted to less than 1 percent of his holdings, leaving him with 7.7 percent of the company's outstanding shares.
Because Filo was granted shares as a company founder, the $3 million in proceeds came at no cost, Yahoo spokeswoman Joanna Stevens said. She declined to comment on Filo's planned use of the proceeds.
When asked whether the sale signaled Filo's intention to leave his daily operational role in the company, Stevens said, "We are not aware of any plans."
Unlike his counterpart Yang, Filo resisted selling his stake even during boom times when Yahoo traded for more than $200 a share. Media shy and intensely private, Filo is considered to be the brain of the company with a devoted following among the company's engineers.
Yang, meanwhile, regularly sells stock and has many of hisby a "blind trust," which sells in regular intervals.
Filo joins a pack of top executives who have profited from Yahoo's recent 52-week highs. Last week,for the first time since taking the helm in May 2001, pulling in about $11 million in profits before taxes and broker fees.
include Chief Operating Officer Daniel Rosensweig; Chief Financial Officer Susan Decker; Chief Technical Officer Farzad Nazem; Executive Vice President Gregory Coleman; secretary Jonathan Sobel; and senior vice presidents Jeffrey Weiner, Toby Coppel, Geoffrey Ralston, Steve Boom and James Brock.
Yahoo shares have surged in recent weeks due to signs of a recovery in online advertising and the posting of the company's. Much of Yahoo's profits have stemmed from its deal with commercial search provider Overture Services, which accounted for during the first quarter.
Yahoo last week said it plans toin cash and stock.
Despite the profitable quarter, Wall Street analysts have expressed concern that its core business of online advertising remains stagnant. Analysts also raised flags that Yahoo only met, rather than beat, expectations.