The Yahoo! board of directors are still deliberating over how to handle CEO Scott Thompson’s falsified resume. “I am sure you have seen the reports of questions raised regarding my undergraduate degree,” Thompson wrote in an e-mail this past Friday that was sent to employees. “As we said yesterday, the board is reviewing the matter and, upon completion of its review, will make an appropriate disclosure to shareholders. In the meantime, I’m doing what I hope all of you are doing — staying focused on our customers, our shareholders, our team and moving Yahoo forward, fast.”
Kara Swisher at AllThingsD has reported that between this incident and the recent massive layoff, “morale [at Yahoo!] is at an all-time low is perhaps understating the situation.” She interviewed dozens of Yahoo! employees to get their opinions about the resume situation.
“He clearly knew and lied for years,” said one employee. “And his handling since (being) exposed has been unacceptable.”
Third Point founder and hedge fund manager Dan Loeb sent a letter to Yahoo!’s board of directors to demand an investigation about Scott Thompson’s bio. In his bio, it said that he had an Accounting and Computer Science degree from Stonehill College. It turns out that Thompson never received a Computer Science degree from Stonehill, but did have an Accounting degree from there.
Thompson had a meeting with top executives late last week, but never brought up the resume issue. “It was the gorilla in the room and it was awkward in the extreme,” stated a Yahoo executive in an interview with AllThingsD. “He never brought it up, which was even worse.” Over the weekend Thompson told his top-level staff that Loeb had a “personal vendetta” against him.
The problem Yahoo! is dealing with is that if they keep Thompson in place, the company’s integrity is at stake with major shareholders. If they fire Thompson, Yahoo! would be temporarily without a CEO to drive the company.