Yahoo called to show Thompson hiring process
ACTIVIST hedge fund Third Point, which has called for Yahoo chief executive Scott Thompson to be ousted for padding his resume, yesterday formally demanded that the internet company provide access to all documents relating to Thompson’s hiring.
Third Point chief executive Daniel Loeb, who has been waging a public battle to place his firm’s nominees on Yahoo’s board, issued an ultimatum to Yahoo on Friday, demanding it sack Thompson by midday yesterday.
The demand letter yesterday begins the process under a Delaware corporation law that allows a shareholder to inspect a company’s books.
Yahoo, whose revenue slid by more than a fifth last year, brought in Thompson, PayPal’s former president, as chief executive in January, five months after Carol Bartz was fired.
Third Point, which last week revealed discrepancies in Thompson’s education record, wants Yahoo to publicly reveal the process by which Thompson was vetted and disclose all minutes of any board meeting where his candidacy was discussed.
Yahoo’s board has said it is investigating the issue.
“We believe that this internal investigation by this board must not be conducted behind a veil of secrecy and shareholders deserve total transparency,” Loeb wrote.
Loeb has been credited with sparking previous changes on Yahoo’s board, namely the resignation of co-founder Jerry Yang and former chairman Roy Bostock.