Yahoo CEO faces calls for ouster after discovery of inaccurate credentials

Shareholder who found fabrication leads charge for Yahoo CEO Scott Thompson's removal.
By MICHAEL LIEDTKE Published: May 5, 2012

— Scott Thompson's reign as Yahoo's CEO is in jeopardy after just four months on the job because he allowed an inaccuracy about his academic credentials to recur for years.

A major Yahoo shareholder who exposed the fabrication is now leading the charge to oust Thompson for unethical conduct. In a letter Friday, activist hedge fund manager Daniel Loeb demanded that the board of the struggling Internet company fire Thompson by noon EDT Monday or face possible legal action.

“CEO's have been terminated for less at other companies,” wrote Loeb, who controls a 5.8 percent stake in Yahoo through his hedge fund, Third Point LLC.

Yahoo reiterated Friday that “the board is reviewing this matter and, upon completion of its review, will make an appropriate disclosure to shareholders.”

Thompson's troubles revolve around an exaggeration about his education at Stonehill College, a small Catholic school near Boston where he graduated in 1979.

Since announcing Thompson's hiring in January, Yahoo had included two bachelor's degrees — one for accounting and the other for computer science — on the executive's biography. The dual degrees appeared on Yahoo's own website and in an April 27 legal document filed with the Securities and Exchange Commission.

After being confronted Thursday by Loeb, Yahoo confirmed that Thompson received only an accounting degree from Stonehill. Yahoo has since removed all references to Thompson's education from his bio on its website. The company hadn't amended its SEC filing with the inaccuracy as of late Friday.

It's unclear whether the inaccuracy about the computer science originated with Thompson or someone else at Yahoo.

But Thompson's bio with dual degrees periodically cropped up before he joined Yahoo. He was listed with a computer degree on a website touting his appearance at the Web 2.0 technology conference in 2010 while he was running eBay Inc.'s PayPal payment service. The computer science degree also has appeared in Thompson's bio in connection with his 2008 appointment to a Silicon Valley startup, Zuora.

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