Yahoo investor demands Thompson resign by Monday
By Hayley Tsukayama,
Dan Loeb of Third Point, Yahoo’s largest outside investor, has writtten yet another letter to Yahoo’s board of directors demanding, in part, that new chief executive Scott Thompson be dismissed by 12 noon EDT on Monday, May 7.
Loeb criticized Yahoo’s response to his Thursday revelation that Thompson had not, in fact, earned a computer science degree as stated in his biography, calling it “insulting” to shareholders.
Yahoo confirmed Friday that Thompson does not have a computer science degree and said that its board is looking into the matter.
Loeb, who has been trying to gain more influence on Yahoo’s board, has also continued to raise questions about the academic credentials of board member Rita Hart, who he says claimed to have a degree in marketing and economics. The letter also calls for her resignation.
Yahoo has said that Hart has a bachelor of science degree in business administration with specialties in those areas.
Loeb and Third Point have made other demands, including more information about the vetting process that went into Thompson’s hiring and about whether Hart and another board member with ties to Thompson, Maynard Webb, knew about Thompson’s academic background ahead of Thursday’s letter.
He also urges the board to appoint his hedge fund’s nominees to the board.
“The Company can ill afford to continue this misguided fight with its largest outside shareholder while it has so many other fires to put out,” Loeb wrote. “There has been enough damage already.”