Yahoo replaced CEO Scott Thompson after a committee confirmed he falsified his degree.
Scott Thompson is now replaced by interim CEO Ross Levinsohn, former executive vice president for Yahoo.
Daniel Loeb of Third Point, pressed Yahoo to change the company’s CEO. Scott Thompson’s degree was business administration with emphasis in accounting, and not accounting and computer science as indicated in his resume.
Loeb lobbied for Thompson to step down. During one of those campaigns, he said, “Third Point has over 1 billion dollars invested in Yahoo and we take no joy in witnessing this carnage. This board’s unchecked value destruction must stop once and for all.”
A few others stepped down, including Gary Wilson, Arthur Kern, VJ Joshi, Patti Hart and Roy Bostock, Yahoo board of directors’ chairman. Fred Amoroso replaces Roy Bostock, and the others replaced by Third Point nominees, including Loeb himself.
Loeb said, “Harry, Michael and I are delighted to join the Yahoo board and work collaboratively with our fellow directors to foster a culture of leadership dedicated to innovation, excellence in corporate governance, and responsiveness to users, advertisers and partners.”
Thompson was deemed by Yahoo as its great hope. He planned to cut two thousand jobs and shut down units that performed poorly.
According to new CEO Levinsohn, in a memo to Yahoo employees, “This may seem like a great deal of news to digest, but as you are all keenly aware, Yahoo is a dynamic, global company in a dynamic, global industry, so change — sometimes unexpected and sometimes at lightning speed — is something we will continue to live with and something we should embrace.”