Third Point demands Yahoo fire CEO by Monday

SAN FRANCISCO Fri May 4, 2012 2:18pm EDT

The headquarters of Yahoo Inc. is pictured in Sunnyvale, California, May 5, 2008. REUTERS/Robert Galbraith

The headquarters of Yahoo Inc. is pictured in Sunnyvale, California, May 5, 2008.

Credit: Reuters/Robert Galbraith

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SAN FRANCISCO (Reuters) - Activist hedge fund investor Third Point demanded that internet company Yahoo Inc fire its chief executive, Scott Thompson, by Monday for padding his resume.

The hedge fund's CEO Daniel Loeb, who has been waging a public battle to place his company's nominees on Yahoo's board, also called for the resignation of board member Patti Hart, whom he had accused of claiming false degrees on her resume.

Yahoo, whose revenue slid by more than a fifth last year, brought in Thompson, PayPal's former president, as chief executive in January, five months after Carol Bartz was fired.

Yahoo spokesmen could not be immediately reached for comment.

Yahoo's board is reviewing the discrepancy in Thompson's educational record -- Yahoo's SEC filings say he has a bachelor's degree in computer science when his degree was in accounting -- after calling it an "inadvertent error."

The resume problem was revealed by Loeb, who issued an ultimatum to Yahoo on Friday demanding it sack Thompson by noon EDT on Monday.

Loeb did not say what actions he would take if the company did not meet his demand.

Third Point wants Yahoo to publicly reveal the process by which Thompson was vetted and disclose all minutes of any board meeting where his candidacy was discussed.

The hedge fund, whose 5.8 percent stake in Yahoo ranks it among the company's largest institutional shareholders, has accused Thompson of deliberately misrepresenting his education.

(Reporting By Poornima Gupta)

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Comments (2)
Chessika wrote:
So either the executive vetting committee of a struggling search engine and their choice for the new CEO can’t differentiate between a Bachelors in accounting vs a Bachelors in Computer Science degree or something smelly went on during his hiring… Don’t know which but it definitely shows why Yahoo continues to swirl just above the drain.

May 04, 2012 3:38pm EDT  --  Report as abuse
LAO78 wrote:
When will Yahoo find a young innovative visionary to move them towards the future quicker than other search engines. Right now yahoo is nothing more than an email spam account and poorly organized and irrelevant front page news articles. They can’t think outside the box and are out maneuvered by everyone they complete. Sadly I’m in the field of psychology and I can see this. Scary what actual tech guru’s must think.

May 05, 2012 11:47am EDT  --  Report as abuse
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