Shareholder Ask for the Resignation of Yahoo’s CEO
A group of shareholders of Yahoo today called for the resignation of the new company’s CEO, Scott Thompson, after confirmation of falsehoods in your resume is considered a violation of the ethical code of the Internet giant.
In an open letter to Yahoo’s board, Daniel Loeb, head of Third Point hedge fund that controls 5.8 percent of the assets of the company, claimed output effectively Thompson on Monday before 20.00 hours GMT.
Behind this claim lies an internal struggle for power shares in the company is in deep crisis because of their inability to cope with competition from Google and Facebook.
Yahoo acknowledged on Thursday, when questioned by Third Point, which studies credited Thompson’s record had been distorted and attributed to an “inadvertent error” without clarifying who was responsible for the failure.
In the credentials submitted by Yahoo on Thompson before the Securities and Exchange Commission U.S. figure who is CEO of the company since January 4 has a BS in Accounting and one in Computer Science, although he never studied this last race.
Loeb demanded on behalf of his group also resignation of Patti Hart, Yahoo executive who was responsible for overseeing the selection process of new direct from the company.
Third Point’s letter also requires the disclosure content of all meetings and reports that evaluated the candidacy of Thompson, the procedures for nomination, and to unveil whether any board member knew the falsehood on his resume before he left to light this week.
Yahoo has come out in defense of its directors in a statement ensuring that the mistakes of the curriculum “is not in any way alter the fact that Mr. Thompson is a highly qualified executive with a track record of success in front of large technology companies” .
Before coming to Yahoo, Thompson had headed the group’s PayPal division of eBay.
Yahoo also said Hart made a selection process of candidates to the board “thorough and impartial”.
Loeb said this scandal as an example of corporate mismanagement in Yahoo and said that the continuity of Thompson and Hart in their jobs “sends a message to all Yahoo employees that apply different rules (ethics) at the top of the company. ”
Loeb claims and Third Group arrive after the attempts to gain a place in the new board of directors of Yahoo, which has been renewed since the beginning of the year.
Yahoo has announced that “Loeb does not bring relevant skills and experience to the board” compared with other candidates.
The company said it offered two seats on the board two candidates of Third Point, Loeb but rejected that proposal “unless he personally was appointed to the board.”
Thompson’s entry in Yahoo was intended to be a catalyst for the company since 2007 has had 5 different CEO, Terry Semel, Jerry Yang, Carol Bartz, Tim Morse (acting) and Thompson.
Since coming to office, Thompson, 54, has laid off about 2,000 workers and plans to cut 50 percent of services offered by Yahoo.
The assets of the company today traded down around 1.5 percent just before the close of Wall Street.
Category: Business News
