Yahoo’s new CEO was forced to step down.
He may also have to repay $7 million.

This week, Yahoo’s CEO of just 4 months was asked to leave the company, after an apparently disgruntled shareholder discovered that his official corporate bio wasn’t accurate: Thompson’s bio said that he’d graduated with a degree in accounting and computer science, but in fact his degree was only in accounting.
The ‘degree in accounting and computer science’ line has been following Thompson around for years, at least since his time as President of PayPal. Did the line get added by a headhunting firm – or by Thompson himself – in order to make him seem more appealing to a high-tech company? It seems odd that someone who is apparently so successful – think what you will about Yahoo as a going concern, becoming the head of these two high-profile organizations means you’ve done something right – would deliberately lie and continue to lie through any number of vetting meetings and SEC filings that are required for the head of a public company. Surely he could have cleared up the computer science ‘inaccuracy’ at any point during the vetting process without everyone suddenly deciding he was the wrong guy for the job.
Thompson has tried to pin the blame on a headhunting firm, who he says ‘embellished’ his bio with the computer science information years ago and it simply went undetected for 7 years, but I think this misses the point: No one is saying that Thompson was incompetent or incapable of doing the job; none of the coverage of the fiasco so far has indicated whether or not he ever took any computer science courses during his time at university.
The problem here for Thompson – other than the disgruntled shareholder, who seems to have made it his mission to get rid of Thompson, for reasons unclear to me – is that Yahoo has a strict code of ethics, which Thompson has breached. He may be a fantastic CEO, a smart guy, and otherwise completely ethical, but to leave him in place when he’s been so publicly exposed as a ‘liar’ not only leaves Yahoo exposed to shareholders, but also to morale problems with employees who feel it’s unfair to be held to higher standards than the CEO.
The consequences for Thompson may also prove to be financial: Depending on how he and Yahoo decide to handle the departure, he may have to repay the $7 million in upfront compensation he received for leaving PayPal to take on Yahoo.
I just heard a commentator on BBC radio taking a very hard line about Thompson and his lies; I find myself less convinced of his implied inherent lack of morals. (I have enough credits for a political science degree, for example – even though I ultimately got a degree in English – and if I’d ever been up for a job where those credits would have given me an advantage, I might have highlighted them on a resume or bio, and never worried that I was really doing anything wrong.) However, the story is a good lesson for everyone: In these days where biographical information is easy to double-check, we should all err on the side of caution.








