Yahoo CEO Scott Thompson’s departure reminds us just how relevant—and delicate—credibility and a sense of authenticity are.
One line on his resume, in which he incorrectly claimed to have earned a computer science degree, resulted in his dismissal. Hedge fund Third Point uncovered the inaccuracy via a “a rudimentary Google search,” making this controversy a powerful example of why executives must be sure that all information that they make available to the public is honest and factual. Driving the point home even more sharply, he won’t be receiving a severance package.
Lost Credibility
Opinions on the issue vary. On Forbes.com, Davia Temin said that, if this was an isolated “little lie,” he should be off the hook. “Let’s hope the Yahoo board has the courage to stand up to bullying by the dissidents and not fire its CEO over a minor technicality,” wrote Businessweek’s Larry Popelka. Jena McGregor weighed in on the Washington Post’s PostLeadership blog:
“In the end, it doesn’t really matter how great Thompson’s experience in his former jobs might have been, or who may have first cast doubt on his resume, or how disruptive his departure could be at a company that has had six CEOs (four designated and two interim) in five years. When credibility is called into question, everything else comes second.”
Interim CEO Ross Levinsohn, who previously served as its global media head, offers a new vision for Yahoo’s future. Reestablishing the company’s identity and reputation when internet hubs are declining in importance will be a daunting task, but Levinsohn appears intent on moving ahead. “In spite of the very bumpy road we’ve traveled, we are achieving genuine and meaningful successes in the marketplace every day and heading in the right direction,” he told Yahoo’s employees on Sunday.