Yahoo CEO has been Victimized – Scott Thompson is Out of Game Now
Yahoo could not keep it confidential more than a week that Mr. Scott Thompson, CEO of Yahoo, has left the organization, announcement made on last Sunday after a week decoration to Mr. Thompson’s resume.
However, as a contingency plan, Mr. Ross Levinsohn, current Head of Global Media at Yahoo, is now going to serve as an interim CEO of Yahoo, meanwhile the board will be busy in searching the permanent solution. It has also been announced that the Chairman of the Board, Fred Amoroso has also been named while those all modifications are immediately effective.
Back in early January, Mr. Thompson was hired as the CEO and he was the third inductee at same position who gets trapped within the short span of three years. It has been predicted that this incident will definitely prove as an addition to the continuing chaos that Yahoo, pioneer of Web Portal Space, has to endure.
In addition, the shuffling of Executives, the company has also ended a proxy fight, lead by the Daniel Loeb, the activist shareholder, through which the Third Point fund investment are led that owns originally 5.7% or more Yahoo. Daniel Loeb was the person who dared to bring the embellished resume under the profound notice of United States Securities and Exchange Commission, dropping the company into the current controversy. Daniel Loeb and two among four people, who had been pushed by him to name the board as directors, are going to be settled on the board. Harry Wilson and Michael J. Wolf are the other people. Board Nominee had been withdrawn on the fourth proposed candidate, who was the Former Chief of NBC, Jeff Zucker.
Further announcements have resisted the company endurance that the current five members of the board will be resigning from their positions as on Wednesday as these are the members, who were about to abscond their positions before the annual meeting of company. Including Roy Bostock, current non executive Chairman of the Company, who will be replaced by Fred Amoroso, these members are Gray Wilson, Arthur Kern, VJ Joshi and Patti hart.
While delivering the announcing statement of change, the Board was found pleased to announce all the changes and all the settlements made with Third Point. Board is also found confident enough that these will be serving at their best interest of shareholders and more accelerate the considerable progress, the Company has organizationally as well as operationally made since August last year.
According to the independent analyst of Technology, Jeff Kagan said on Sunday via email that the departure of Thompson comes after a controversy that was handled very poorly. He also added that the Company has been under pressure for last few years and this additional incident will only create the matters worse to the company. As his prediction goes, the “CEO mess” will impact negatively on Yahoo and it will contribute the disturbance to the company for at least few more quarters.
Mr. Thompson was hired as CEO by Yahoo to get back the under pressure internet company to the track after the changing years of leadership during the midst of uncertain performance of financial condition as well as uncertain competitive pressures such as Google and more recently Facebook. During same scenario, Daniel Loeb started pushing his personally customized slate of candidates, including him, for the addition/replacement in the members of board of directors. Being the part of this, it was also revealed that Mr. Thompson did not possess any college degree in computer science as well as in accounting that goes completely against to what was mentioned on the Resume as well as on the financial filings of the company.
To put down the situation, Mr. Thompson said this to be the fault of headhunting firm that is Heidrick and Struggles. According to him, the responsibility of this mistake was during his tenure of Presidency of Paypal eBay units, back in 2000. On the other hand, M/s Heidrick and Struggles has replied to call it a fixing and assured that it is confirmed not true to blame Heidrick and Struggles is responsible. Furthermore, the firm stated to the Board of Yahoo that Mr. Thompson has submitted the copy of Resume that includes the degree on computer science.
Mr. Thompson joined Yahoo as CEO in January 2012 and he replaced Carol Bartz, who got fire in last September by the board. Carol Bartz has very blunt approach and she was the first one to bring breath of fresh air to the ailing company as she was complete with public speeches frequently colorful language but resulted in a rapid change. Later on, Carol Bartz was hired as the replacement of Jerry Yang in 2009 and Jerry Yang, Co-founder of the Company, was stepped into the position of CEO in the mid of 2007.
Mr. Thompson, as soon as steps in, started quickly improving the ailing fortunes company by cutting the jobs as much as 2,000 and making some changes in management as well. The estimated sales figure of Yahoo had beaten as predicted by the analysts and reported to have more revenue to the company as ever earn during last three years span. It created a hope that Yahoo is still on the pace to get mended.
The situation gets interrupted by Daniel Loeb as he found faults in working style of Mr. Thompson. Daniel Loeb led the public campaign to unseat Mr. Thompson from the position of CEO, arguing that the announcement of job cuts was not feasible without providing the detailed plans for the future of company. Furthermore, he argued that the preceding acquisition bid of Microsoft should have been accepted.
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