Picture this: You're on the board of a multi-billion dollar company. As an internet company, you're facing heavy competition from other industry giants and no matter what strategies you employ, you still seem to get left behind. You come to the conclusion that it's time for a change - starting with your company's CEO.
She seemed like the perfect person to lead the company when you hired her three years ago, but she hasn't really done much to improve the company's status. As you face heavy pressure from investors about shaking things up, a public poll suggests that your CEO is the "most-overpaid CEO" in the nation. What do you do? You ditch your CEO and start looking for someone else who can share the board's vision and finally lead the company to success.
Maybe this situation hasn't happened to you, but it was a scenario congruent to that of internet company, Yahoo, last September. The man to step in and finally lead Yahoo to success? None other than former president of PayPal, Scott Thompson.
Scott Thompson controversy
When Scott Thompson agreed to take the CEO position at Yahoo, the board thought they finally found their man. He has already tasted success as the former president of PayPal, and he could replicate that same success at Yahoo. Things were looking bright. That is, until Thompson's background was dissected by Yahoo investor Daniel Loeb. The results of the thorough examination presented an interesting flaw in the new CEO's resume.
Although Thompson's resume stated that he graduated from Stonehill College with a dual degree in accounting and computer science in 1979, Loeb had revealed that Thompson only graduated with a degree in accounting. His suspicions were confirmed by Stonehill, who stated that the computer science degree hadn't even been added to the institution's programs until 1983. Thompson "padded" his resume as a way to deceive Yahoo to secure his position as CEO. Amidst the controversy, Scott Thompson has decided to step down as Yahoo's CEO after only four months in the position.
Was pressure to step down justified?
Should Scott Thompson have been fired? The fact is, the man lied about his credentials to undoubtedly win the position. It begs yet another question: Would his past experience have been enough to secure the job as Yahoo's CEO? Should Yahoo have just brushed this inaccuracy under the carpet and given Thompson the chance to prove himself? The debate is strong between both sides, but a Mashable poll suggests that most people believe Yahoo should have fired him immediately:
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