Shareholder demands Yahoo fire CEO by May 7
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E-mail Xinhua, May 5, 2012
A Yahoo shareholder on Friday demanded the company's board fire chief executive officer Scott Thompson over his false resume by Monday noon.
In a letter to Yahoo board, Daniel Loeb, managing partner of hedge fund Third Point, which owns 5.8 percent of Yahoo, demanded that Yahoo fire Thompson and director Patti Hart whose academic background have also been questioned.
Yahoo must "terminate Mr. Thompson for cause immediately given his demonstrable unsuitability to remain chief executive officer and a director of Yahoo and accept the resignation of Ms. Hart for similar reasons," he said in the letter.
Loeb and Third Point first on Thursday alleged Thompson inflated his college credential. Yahoo later confirmed that Thompson did not have a computer science degree as claimed, saying it is "an inadvertent error."
Yahoo board said late Thursday that it will investigate the discrepancy.
Loeb said in the Friday letter that Yahoo's initial response to the issue was "insulting to shareholders."
Meanwhile, Loeb also asked Yahoo to publicly reveal the process it underwent to select Thompson as CEO, disclose any ties between Thompson and directors on the board and provide shareholders with information regarding the director nomination process.
According to Loeb, he was informed by Stonehill College that Thompson only graduated with a degree in accounting in 1979 and the school did not begin awarding computer science degrees until 1983.
Thompson had been claiming that he owned a computer science degree from Stonehill College in his bios at eBay to the current Yahoo CEO, as well as in regulatory filings to the U.S. Securities and Exchange Commission.
Loeb is currently in a proxy fight with Yahoo board, trying to fire some directors and install new ones. He wants to be a new board member, but Yahoo on Wednesday said in a letter to shareholders that Loeb will not be given a seat.
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