Pros

Nice facilities, benefits, and salary is competitive. There are some interesting problems to solve, and Yahoo! gets to solve them at a scale you don't see at many companies.

Cons

No autonomy, no foresight, no innovation. Why create something innovative? Let's just do what the competition does. Why create something innovative? It sounds risky.

Advice to Senior Management

Management, listen to your smart engineers. Brilliant ideas come from them, not you, and certainly not the rumor mill or the joneses. Look up the term 'knowledge inversion'. And senior management--learn to deal with the fact that software projects fail, and fail often. Don't act so surprised when reality comes and breaks your unrealistic expectations.