Why Is This Yahoo Director Stepping Down?
Yahoo Inc (NASDAQ:YHOO) director Patti Hart, a member of the Yahoo committee that hired Chief Executive Officer Scott Thompson, has indicated that she will not seek re-election to Yahoo’s board.
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Scott Thompson’s academic credentials were apparently misstated by Yahoo in a filing. The company has formed a three-member committee to review his appointment and credentials.
Ostensibly, Hart’s reason for leaving Yahoo’s board is to concentrate on her primary duties as CEO of International Game Technology (NYSE:IGT). “My primary responsibilities are to serve as chief executive officer of IGT and to eliminate activities that may interfere with my ability to carry out my commitments to IGT and its valued stakeholders,” Hart said in the statement.
Third Point LLC, a major investor in Yahoo, has raised a storm around Thompson’s allegedly exaggerated credentials, claiming that the episode showed the company was mismanaged. Third Point CEO Daniel Loeb also claimed that Hart had inflated her credentials, which read “bachelor’s degree in marketing and economics,” whereas she had a degree in neither subject.
International Game Technology also reviewed Hart’s qualifications and found “no material inconsistencies” according to its Chairman.
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