A little over four months since starting the job, a fudged resume is forcing Yahoo CEO Scott Thompson's to announce will step down from his position for "personal reasons" on Monday. All Things D's Kara Swisher is reporting that Thompson will be replaced in the interim by Yahoo's global head of media Ross Levinsohn. Sources close to the matter told ATD that Thompson will say he's leaving because of a "newly discovered illness," but it's not hard to diagnose the real source of his departure: the resume scandal and the poor ways Thompson's attempted to handle explain his mistakes. Patti Hart, the director who led the search that got Thompson hired, was the first person to go after news broke that Thompson lied about having a computer science degree on his resume.
Additionally, Swisher's reporting the company is about to reach a settlement in the proxy fight with activist shareholder Daniel Loeb of Third Point, who discovered the mistake on Thompson's resume a little over a week ago. The settlement will see Loeb appointed to Yahoo's board of directors, along with Micheal Wolf and Harry Wilson who were both handpicked by Loeb. Loeb's fourth selection, former NBC boss Jeff Zucker, will withdraw his nomination. ATD is reporting that the current five members of the board of directors will resign effective immediately, even though they were already scheduled to step down at the company's annual meeting during the summer.
No one at Yahoo would comment on the story, but this is might actually be the best possible scenario for them. Rather than drag the issue out, this is a clean break. They aren't letting the scandal be dragged out to make them look even worse. An almost completely new board of directors, which will be led by the recently appointed Fred Amoroso, can move forward and focus on improving the company's future. Swisher described Harry Wilson, one of Loeb's board of director choices, as a "turnaround specialist," which seems to be exactly what the company needs.
This article is from the archive of our partner The Wire.