SOAP OPERA: Yahoo CEO is Out
Yahoo! Inc. (NASDAQ:YHOO) CEO Scott Thompson will step down in his role at the company over the resume scandal with his faux computer science education.
According to AllThings D who reported the story, the company is expected to say Thompson will exit is for “personal reasons.” But the more than week old crisis over the executive’s resume is the real reason.
Thompson’s interim replacement will likely Yahoo’s global media leader Ross Levinsohn; he previously ran the company’s Americas unit, which encompassed advertising sales.
Along with Sunday’s management news, Yahoo’s board is also near a settlement with the whistleblower on Thompson’s indiscretion, activist Yahoo shareholder Daniel Loeb of Third Point. This isn’t set in stone as Yahoo’s board wass to meet in the morning and approve the changes.
Regardless, Loeb should be happy as three seats suggested by him will take happen. This will include media executive Michael Wolf and turnaround specialist Harry Wilson with five potential more thanks to current board members immediately leaving.
In another piece of news, Fred Amoroso will become Yahoo’s chairman of the board. He was been in charge of the investigation for Loeb’s allegations against Thompson, whose side of the story has been the recruiter, Heidrick and Struggles, introduced the error back in the mid-2000s when he was hired by eBay (NASDAQ:EBAY).
The recruiting firm responded last week and said that Thompson’s assertion “verifiably not true.” Sources, according to AllThings D, have said Heidrick informed Yahoo’s board that it had a resume submitted by Thompson that included the faulty Computer Science degree.
Thompson’s demise has also been attributed to declining morale by Yahoo’s employees who didn’t support the newbie CEO’s excuses for Resumegate. Last week, Yahoo internal message boards included many rejections by them to Thompson’s reasons. Top executives and Yahoo engineers also went to the Board and asked for them to fire Thompson.
And just another straw in the camel’s back was the recent announcement for 2,000 layoffs and restructuring for various departments. While Thompson wanted to add a data and commerce piece to Yahoo’s big ad-based business, it will now likely rest with Levinsohn to move the initiative forward.