Yahoo sets up committee to investigate Thompson CV claims

Yahoo sets up committee to investigate Thompson CV claims

Yahoo has formed a special committee to look into the academic credentials of its new CEO Scott Thompson after it emerged that claims he holds a computer science degree were false.

New York hedge fund manager Daniel Loeb of Third Point, which holds a 5.8% stake in Yahoo, pointed out the inaccuracies in former PayPal chief Thompson's CV last week.

Yahoo has since confirmed the error and Thompson has apologised but Third Point's demands for the new CEO, hired in January, to be fired for unethical conduct have been ignored.

PayPal also confirmed that Patti Hart, the director in charge of finding and hiring Thompson, had errors in her academic record. Hart has now decided not to seek re-election to the board.

Yesterday Third Point stepped up its assault, requesting the tech firm's records covering its decision to appoint Thompson.

Says a statement: "Third Point believes that Yahoo shareholders and employees will be best served if the board accepts responsibility quickly for this latest debacle. If the directors are truly interested in 'working in a constructive manner with Third Point,' they should provide answers promptly."

In response, Yahoo says it will carry out a "thorough review" of Thompson's academic credentials, as well as the "facts and circumstances related to the review and disclosure of those credentials" in connection with his appointment as CEO.

Alfred Amoroso, an independent director who joined the board in February will chair the committee, which will also feature John Hayes and Thomas McInerney, who both joined the board in April.

Says a statement: "The special committee and the entire Board appreciate the urgency of the situation and the special committee will therefore conduct the review in an independent, thorough and expeditious manner. The Board intends to make the appropriate disclosures to shareholders promptly upon completion of the review."

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