The issue was blown open by Daniel Loeb, chief executive of hedge fund Third Point. Loeb, whose fund controls 5.8 percent of Yahoo shares, formally requested all records related to the hiring.
This prompted Thompson to apologize to his employees, claiming he knows how the issue negatively affected everyone. He has taken full responsibility and said he would respect the board’s decision on conducting an independent review. Yahoo board is apparently investigating the issue.
This is not the first time Loeb has incited changes on the board. Apparently, resignations of cofounder Jerry Yang and former chairman Roy Bostock are also said to have been his work. Loeb made it clear that investors deserve a transparent investigation this time around.
Yahoo hasn't had the best of times with CEOs lately, with a few of them getting the boot. Having one that lied on his resume however definitely won't help, and investors should probably think hard before their stock starts laughing, if you catch my drift.