Yahoo!’s former CEO Scott Thompson might be entering search terms like “reputation damage control” and “jobs for disgraced executives” after losing his job Sunday for embellishing his resume.
The Internet search firm’s board ousted Thompson after an activist investor discovered that Thompson had claimed bachelor’s degrees in accounting and computer science on his resume, but had actually only earned an accounting degree from Stonehill College, outside Boston.
Daniel Loeb, whose Third Point hedge fund owns 5.8 percent of Yahoo!, sent a letter to the board on May 3 detailing the inaccuracies and asking why they appeared on Yahoo! SEC filings, the Yahoo! website, and on PayPal’s website when Thompson worked there.
The board initially circled the wagons around Thompson, accepting his assertion that the resume gaffe was made by an executive search firm. Later, the headhunting firm claimed to have proof to the contrary.
The board fired Thompson without severance and demanded that he give up $16 million in unvested stock options. He will keep the $5.5 million that Yahoo! paid him to leave PayPal along with the earned portion of his $2 million salary for 2012.
Loeb targeted Thompson after a failed bid to gain a seat on Yahoo!’s board of directors. Loeb has since struck a deal to nominate three people to the Yahoo! board.
Ross Levinsohn, who was Yahoo!’s executive vice president and head of global media, will take over as interim CEO.
“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,” said chairman of the board Fred Amoroso.