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May 04, 2012

Should CEOs Get Away with Padding Their Resumes?

By Jacqueline Lee, Contributing Writer

Dan Loeb, CEO of Third Point, a volatile Yahoo shareholder, has accused Yahoo CEO Scott Thompson of misrepresenting his educational background in his company bio.



“We learned that during Mr. Thompson's tenure at Stonehill College only one such course was even offered -- Intro to Computer Science,” Loeb wrote in a vitriolic proxy letter. “Presumably, Mr. Thompson took that course.”

Thompson claims to have earned a bachelor’s degrees in both accounting and computer science from Stonehill College in Massachusetts. However, Stonehill has confirmed that Mr. Thompson only holds an accounting degree from their institution.

Loeb has an ulterior motive for exposing Thompson’s error; after all, he has been fighting a proxy battle to become a Yahoo board member since February. However, Thompson is just one of a long line of CEOs who have falsely claimed degrees on their resumes. Some of these CEOs have forfeited bonuses. Others have resigned or have been fired outright.

Notorious tech executive, Tang Jun led Microsoft (News - Alert) China and Shanda Interactive Entertainment to large profits before being exposed for lying about his PhD. Instead of earning a PhD from the California Institute of Technology, Tang received his degree from Pacific Western University, a non-accredited institution that has been sued for functioning as a diploma mill.

Investigations into Tang’s credentials also revealed evidence of his participation in a ponzi scheme, for which he is under criminal investigation. Tang has responded without apology: “Losers cheat some people and get caught. Winners cheat the whole world all the time.”

So what should happen to Scott Thompson? At the beginning of April, Thompson laid off 2,000 Yahoo employees, citing the desire to create a smaller, nimbler, more innovative company. However, analysts question whether the damage to Thompson’s reputation could be another devastating blow for the already troubled company.

Yahoo has responded that Thompson’s omissions do not alter his track record as an executive capable of leading a major consumer technology company. However, the company did say that it was investigating the claim and would make a disclosure to shareholders shortly.

The Yahoo Code of Ethics specifically tells employees to avoid exaggeration in all business records and communications. The code also says to “Make sure information we disclose about our company is clear, truthful, and accurate.”

At the same time, the code does contain a statement that Yahoo reserves the right to waive the contents of the code “based on the best interests of Yahoo and its stockholders.”




Edited by Brooke Neuman
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