The embattled CEO, who has been under fire since a Yahoo investor revealed the false academic credential last week, said that he had never proofread the résumé compiled by the firm and did not know of the error until the uproar began.
Thompson claimed that he never submitted a physical résumé to either Yahoo or PayPal, where he was president of its eBay division before joining Yahoo in January, because hiring firms compiled their own dossiers to give to prospective employers. According to a report Thursday from Business Insider, Thompson said he did not review the documents from the firms. It’s likely, he said, that a misstated credential listed on a dossier by a placement firm employee was duplicated repeatedly in later biographies.
Thompson admitted that he made a mistake by not reviewing the documents.
Yahoo's largest outside investor Daniel Loeb was the first to bring attention to Thompson’s misleading résumé. He also questioned the academic credentials and leadership of Yahoo board member Patti Hart, who headed the search committee that hired Thompson. Yahoo announced Tuesday that Hart would not seek reelection to the board.
In a letter to the board Wednesday, the Third Point hedge fund wrote: “Mr. Thompson's ‘apology’ was clearly insufficient and it seems that the only thing he actually regrets is that he has been caught in a lie and publicly exposed. Without any explanation or accountability, Yahoo! has been left to flounder under a discredited leader for an undefined period. So, after six days, we must ask – what is this Board waiting for?”
In Wednesday’s letter, Loeb demanded that Thompson and Hart be replaced immediately with nominees that the hedge fund recommended for the board, and that a Third Point nominee lead the next CEO search committee. Loeb also said that the company should appoint an interim CEO immediately, suggesting either Yahoo chief financial officer Tim Morse — who served as interim CEO earlier this year — or Global Media head Ross Levinsohn.
“This is the only way for Yahoo! to move past this embarrassing episode,” the letter said.
After confirming that Thompson held only an accounting degree, Yahoo launched an investigation to review the CEO’s academic record.
By Hayley Tsukayama
From The Washington Post
Third Point LLC sent Yahoo! a demand today pursuant to Section 220(b) of the Delaware General Corporation Law to inspect books and records relating to the hiring of CEO Scott Thompson, the appointment of Patti Hart to the Yahoo! Board, and the selection of Board Members Peter Liguori, John Hayes, Thomas McInerney, Maynard Webb, Jr., and Fred Amoroso.
If you want to read Third Point’s demand, click HERE or on the Read Button
