Scott Thompson resigns from Yahoo

Scott Thompson, Yahoo’s CEO, has been hit by a controversy after it became known that the former PayPal president has been lying about his educational background. The chief executive, who spent barley six month in charge, will
now be replaced by Ross Levinsohn.

However, the motives which could have justified his resignation has been deemed personal. But in reality, it is a moral issue and credibility for a company you go through serious difficulties to compete in the new digital age against powerful rivals like Google
and Facebook.

Thugh the profile of Thompson indicates that he has been graduated in computer science. However, he only has a degree in accounting. The timing could not be worse, just weeks after Yahoo! announced a major wave of layoffs as part of its restructuring process.
The Governing Council had supported him so far.

The resignation responds to pressure from the bottom ThirdPoint, which demanded  Thompson’s resignation and even proposed a substitute in Levinsohn. The latter is the current vice president of Yahoo!, responsible for advertising, digital media and associations.
The person who defines the product strategy and content.

Thompson, who had been snapped up by Yahoo! had led the electronic payment system PayPal at eBay, defended his honesty until the last minute and told the board that he  had never submitted a resume for the position as head of the company. He attributed the
error to the firm that undertook to find a candidate to succeed Carol Bartz.

In addition, amid controversy over his professional profile, the executive told the board that he had been diagnosed with thyroid cancer. This announcement has been partly presented as a justification to the company’s argument about the personal reasons for
resignation.

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Posted by Farasat Ali on May 16 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry