In the wake of CEO’s inaccurate educational qualifications
The Board of Directors of Yahoo! have announced a special committee to review its CEO Scott Thompson’s academic credentials.
The special committee came after a hedge fund Third Point, which owns a 5.8% stake in Yahoo, has filed for the release of documents relating to the hiring of the CEO with the Securities and Exchange Commission.
The filing by Third Point with Securities and Exchange Commission came after the hedge fund’s deadline passed on its demand for the ouster of Thompson for misrepresenting his educational background.
Last week, Third Point Co-founder Dan Loeb wrote in a letter to Yahoo saying a rudimentary Google search reveals a Stonehill College alumni announcement stating that Thompson’s degree is in accounting only.
"That announcement is consistent with other documents (including filings with the SEC) that reflect Thompson received a degree in accounting, but not computer science," added Dan.
Yahoo! stated it will look into the facts and circumstances related to the review and disclosure of those credentials in connection with Thompson’s appointment as CEO.
The company said the special committee and the entire Board appreciate the urgency of the situation and the special committee will therefore conduct the review in an independent, thorough and expeditious manner.
The group will be chaired by Alfred Amoroso, and will also have John Hayes and Thomas McInerney, independent directors who joined Yahoo’s board in April this year.
The committee has also retained Terry Bird of the litigation firm Bird, Marella, Boxer, Wolpert, Nessim, Drooks and Licenberg as its independent counsel.
Yahoo! Board intends to make the appropriate disclosures to shareholders promptly upon completion of the review.
Meanwhile Yahoo’s largest outside shareholder demanded that the company should make its finance chief or head of media as the interim chief executive officer.