What Will Be Scott Thompson’s Fate?
Yahoo! Inc. (NASDAQ:YHOO) CEO Scott Thompson apologized to employees Monday for having misrepresented himself on his resume, but did not say he has plans to step down, despite numerous calls for his resignation.
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One of the most vocal proponents for his resignation is Daniel Loeb, manager and founder of hedge fund Third Point LLC, who sent a letter on Thursday to Yahoo’s board asking that Thompson be fired for having falsified his academic record. Yahoo later confirmed that while Thompson had listed a degree in computer science on his degree, he had never been awarded that degree. Loeb is currently in a proxy fight as he tries to wrest control from the current board.
In a memo sent Monday to employees, a copy of which was obtained by the Associated Press, Thompson said he takes “full responsibility” for his actions and apologized to the company’s employees. Thompson said he hopes the Yahoo board will soon wrap up its investigation into the matter, and told workers that he will be focusing on his work until that time.
Thompson seemed to be gaining momentum since being hired to head the floundering company in January. Yahoo reported solid first-quarter earnings recently, and Thompson outlined what he said would be a stronger path forward. But now all his work could be undone if he loses trust inside the company.
Business Insider’s Nicholas Carlson has collected responses from Yahoo employees who say they are angry and frustrated with Thompson, particularly after he decided to cut 2,000 jobs. Now Yahoo’s board must decide whether it makes sense to keep a chief executive with a serious image problem who has also made serious headway in reinvigorating the company, or whether they should begin the search for his replacement.
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