More bad news for Yahoo as Scott Thompson, as the current Chief Executive Officer of the company could lose his job because of a lie he spoke about his academic credentials. The lie was exposed on Thursday by Yahoo’s major shareholder who is currently leading the charge to expel the CEO for immoral conduct. In a letter which was drafted on Friday, Daniel Loeb, activist hedge fund manager insisted that Yahoo’s board of directors should fire Scott Thompson by Monday. If they didn’t do so, they could also face legal action.
Furthermore, Daniel Loeb who controls 5.8 percent stake in the company through his hedge fund said that the board of directors and Thompson should make no mistakes as it is a very serious matter. However, Yahoo didn’t give any statements on Friday. For Thompson, the centre of his problem rotates around an overstatement about his education at Stonehill College which is a school near Boston. Prior to announcing Scott Thompson’s appointment in early January, the company had incorporated 2 bachelor’s degrees, 1 for computer science and 1 for accounting on the executive’s biography. Furthermore, this dual degree appeared on the company’s official website as well as in legal document which was filed in April with the SEC. However, after being accused by Daniel Loeb, Yahoo confirmed that Scott Thompson only received 1 degree which was in accounting. He received this degree back in 1979 from Stonehill College. On the other hand, on Thursday, Yahoo Inc said that its board would look into this issue and reveal its findings to shareholders but the company didn’t provide any schedule or dead line. Meanwhile, in Loeb’s Friday letter, he urged that the CEO should be sacked in order to avoid lasting damage to Yahoo’s culture.
If Scott Thompson is fired, Yahoo would have to appoint its 5th CEO in just five years. Yahoo appointed Thompson with the hope that he would be able to pull the company out of its financial crisis and give it a new direction.