CEO Scott Thompson has left internet company Yahoo over a mess created by a Computer Science Degree his resume claimed. (When he went to that school, it did not offer that degree.)
Thompson was Yahoo’s fourth CEO in the previous five years. He replaced Carol Bartz, who was fired because she could not turn the firm around. The CEO was initially defended by the Board and Management (the misstatement cast as an “error”), but in the face of sustained criticism, the outcome changed.
There was no official announcement early, but the storm has been brewing for several weeks as the embattled company has been struggling to recover its former market position. The company is “negotiating” with large shareholders to change the Board composition, as part of the attempt to recover shareholder value.
Shares are trading at about $15, which is well below the $31 that the Board declined to accept from Microsoft in 2008.
It seems simple, but companies need to be sure the resumes of their most senior employees are accurate. The departure of a possibly capable CEO who could have helped, but for mis-statements on a resume, will set Yahoo back in its transformation.