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Updated: May 4, 2012 08:48 IST

Yahoo confirms misleading info on new CEO's resume

AP
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Yahoo CEO Scott Thompson
AP
Yahoo CEO Scott Thompson

A disgruntled Yahoo shareholder questioned the qualifications and integrity of recently hired CEO Scott Thompson after exposing a misrepresentation about the executive’s education.

The fabrication confirmed on Thursday by Yahoo Inc. gives New York hedge fund manager Daniel Loeb more artillery as he tries to topple a board of directors favoured by Mr. Thompson, who became CEO of the troubled Internet company four months ago.

Mr. Loeb, whose fund Third Point owns a 5.8 percent stake in Yahoo, gained more leverage when he discovered Mr. Thompson doesn’t have a bachelor’s degree in computer science from a small college in Easton, Massachusetts, as Yahoo stated in a regulatory filing last week.

Mr. Thompson only has an accounting degree from Stonehill College, an accomplishment that Yahoo also listed in the filing. The accounting degree was the only listed in Mr. Thompson’s resume last year by eBay Inc. when he was still running that company’s PayPal payment service.

Yahoo confirmed Mr. Thompson’s credentials had been exaggerated in the filing with the Securities and Exchange Commission, and brushed it off as an “inadvertent error.”

But Mr. Loeb pounced on the misinformation as a violation of Yahoo’s code of ethics and called for an independent investigation to determine whether Mr. Thompson had misled the company’s board about his technology credentials. He also cited the mix-up as an example of Yahoo’s poor corporate governance.

“If Mr. Thompson embellished his academic credentials we think that it 1) undermines his credibility as a technology expert and 2) reflects poorly on the character of the CEO, who has been tasked with leading Yahoo at this critical juncture,” Mr. Loeb wrote in a letter to Yahoo’s board on Thursday. “Now more than ever Yahoo investors need a trustworthy CEO.”

In the past, other companies have suspended or fired executives who were caught lying on their resumes.

The company stood behind Mr. Thompson in its statement. “This in no way alters that fact that Mr. Thompson is a highly qualified executive with a successful track record leading large consumer technology companies,” Yahoo said. “Under Mr. Thompson’s leadership, Yahoo is moving forward to grow the company and drive shareholder value.”

Keywords: YahooScott Thompson

Though the academic background is seldom considered a decision factor on an
individual in corporate America, some avenues expect genuinely qualified individuals particularly when a firm is at cross roads and therefore a savior catapulting it out of a possible demise. There has been a Gates and/or Jobs who ran globally acclaimed companies that offered millions with capabilities never seen before and public least amused about their lack of college education. So its a matter of how a company fares and in case Yahoo is in a dire situation needing a probably highly qualified individual as opposed to a Chief Accountant!

from:  rao s. thotakura
Posted on: May 5, 2012 at 07:28 IST

Has it become a trend to corner & disgrace people based on the date of
birth, their education and so forth.? Its both national and
international. While there is no question of compromise on the level of integrity one has to maintain when they aim for top jobs, there should
also be an across-the-board understanding to accept people on the job
more based their performance and value-addition.

from:  satishganz
Posted on: May 4, 2012 at 11:11 IST
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