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Yahoo CEO Should Be Fired Over Resume Error: Loeb

CNBC.com
Friday, 4 May 2012 | 1:47 PM ET

Daniel Loeb, manager of hedge fund Third Point, which owns 5.8 percent of Yahoo, sent another scathing letter to Yahoo's board on Friday, demanding Yahoo CEO Scott Thompson be fired for inflating his academic record by noon on Monday.

Daniel Loeb, founder and CEO of Third Point.
Jacob Kepler | Bloomberg | Getty Images
Daniel Loeb, founder and CEO of Third Point.

Yahoo's admission of "error" in representing Thompson's background is "inadequate," Loeb said.

"Yahoo!'s initial response yesterday to Third Point's identification of material inaccuracies in both CEO Scott Thompson's and Director Patti Hart's educational record was insulting to shareholders," wrote Loeb in the letter.

Yahoo has been embroiled in an ongoing battle with Third Point for control over its board. Loeb is hoping to name a slate of four directors, including himself.

The company acknowledged on Thursday that it had overstated Thompson's educational background. In a press release, Yahoo said Thompson has only a bachelor's degree in accounting from Stonehill College and not one in computer science as well.

Third Point Demands Yahoo CEO Steps Down
Credibility is a huge issue for Yahoo's CEO Thompson, reports CNBC's Jon Fortt.

The board said Thursday that it will investigate what happened.

Loeb outlined several actions he would like Yahoo to take by Monday. First, he wants Yahoo to disclose the process it underwent to select Thompson as CEO, then disclose any ties between Thompson and directors on the board. He also requested more detail about how Yahoo selects its directors and he demanded the board fire Thompson for cause given his "demonstrable unsuitability" to remain CEO.

He also requested Patti Hart, a Yahoo board member, step down for a similar reason.

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  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

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