Yahoo CEO Steps Down

May 14, 2012  •  Post A Comment

Amid an inquiry into his credentials, Yahoo Chief Executive Scott Thompson stepped down Sunday, leaving the struggling Internet company just four months after joining, reports The New York Times.

Thompson will be replaced on an interim basis by Yahoo global head of media Ross Levinsohn. Fred Amoroso, a director who is leading the inquiry into Thompson’s credentials, will serve as Yahoo’s new chairman.

The story notes, "The decision is meant to move Yahoo past one of the most embarrassing episodes in the Web pioneer’s history as the company tries to revitalize itself."

The decision is a victory for activist hedge fund Third Point, which had been waging a proxy fight to get its nominees on Yahoo’s board and had pointed out an inconsistency in Thompson’s published biography.

Under a settlement between Yahoo and Third Point that was announced on Sunday, Third Point founder Daniel Loeb will gain a board seat, as will two of his designees, Michael J. Wolf and Harry Wilson, the piece notes.

Former NBC Universal Chief Executive Jeff Zucker will withdraw his nomination, the piece adds.

"Five current Yahoo board members, who had already decided not to stand for re-election, will instead leave immediately. The board is considering adding one more person," according to the story.

As previously reported, Thompson listed a bachelor’s degree in computer science from Stonehill College, although the institution didn’t offer the degree until four years after he graduated.

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