Yahoo CEO Scott Thompson has apologized for listing a false bachelor's degree in his official bio, but doesn't seem to be preparing for a resignation. Thompson sent a memo to company employees following the controversy.
Yahoo provided a copy of the memo for The Associated Press; the memo didn't explain why Thompson's bio has listed a bachelor's degree in computer science that he never received. An activist hedge fund - Third Point LLC -, that owns a 5.8 percent stake in the company, has escalated its efforts to remove the CEO on the grounds of unethical conduct.
Third Point had set a noon Eastern Time deadline Monday, May 7, for Yahoo to fire Thompson. The deadline passed without the firing.
Thompson listed the computer science degree before he joined Yahoo; the most recent claim of the qualification was in the April 27 filing with the Securities and Exchange Commission.
Experts in corporate ethics and board governance said the deception over Thompson's education probably should end his reign as CEO.
Third Point LLC is also pushing to gain four seats on Yahoo's board. Daniel Loeb runs Third Point and believes he and three allies could help to increase Yahoo's revenue and stock price if appointed. The shareholder also wants to investigate the appointment of six directors, five of whom have been appointed since Thompson became CEO: Peter Ligouri, John Hayes, Thomas McInerney, Maynard Webb Jr and Fred Amoroso.
Third Point also wants records concerning the appointment of Patti Hart to the board in 2010. Hart led the committee that searched for new directors after co-founder Jerry Yang, and four other members, announced a step down from Yahoo's board.
The investor also wants Hart to resign because of an inaccuracy in her bio, claiming she has a bachelor's degree in marketing and economics. However, Yahoo clarified Hart's bio: she graduated from Illinois State University with a bachelor's degree in business administration that specialised in marketing and economics.
Yahoo is investigating why the education qualifications were exaggerated. It promised to share its findings with shareholders when the inquiry is complete. Third Point LLC seems to be the only shareholder pushing for resignations at the moment.
