Yahoo CEO's Ouster Made Over Fake Bachelor's Degree
Yahoo CEO Scott Thompson has been fired just four months after taking up the top job following allegations that he lied about his academic credentials.
Thompson was confronted about his Computer Science degree after activist shareholder group Third Point discovered that he actually does not have one, according to The New York Times.
Thompson claimed to have held a Bachelor's degree in both accounting and computer science from Stonehill College, although the dissident shareholder group determined that his degree is only in Accounting.
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His false qualifications were even referred to in several published company biographies, including the one in the company's latest annual report to the SEC, which critics say will add further damage to Yahoo's already troubled brand.
"There's an external lack of credibility, which is going to make it very hard for the firm to move forward," Rita McGrath, associate professor at Columbia Business School, told the Houston Chronicle.
Thompson's departure mark's Yahoo's fourth CEO in five years, which has led to widespread uncertainty about the company's future.
Ross Levinsohn, executive vice president of the Americas for Yahoo, was named interim CEO after Thompson's departure, and despite criticisms, he made assurances that the company remains successful.
"In spite of the very bumpy road we've traveled, we are achieving genuine and meaningful successes in the marketplace every day and heading in the right direction," Levinsohn wrote in a memo that was re-posted to several technology blogs.
Yahoo's annual revenue has significantly declined over the past three years, going from $7.2 billion in 2008 to $5 billion in 2011.
Despite the company's decline in profits, investors remain confident that Yahoo can successfully overcome the setback.
"The board believes in the strength of the company's business and assets, and in the opportunities before us, and I am honored to work closely with my fellow directors and Ross to continue to drive Yahoo forward," Fred Amoroso, chairman of the board, said in a statement.
