» Costly management changes: In roughly a year, Yahoo has had to make multiple transitions at the top — and each time, it has cost the company millions. When Carol Bartz left Yahoo, she received a $10 million severance package. When Scott Thompson was forced out, he didn’t get a severance, but he got to keep a $7 million financial package he received after he left Paypal. Not bad for less than six months of work.
I want you to know how deeply I regret how this issue has affected the company and all of you. We have all been working very hard to move the company forward, and this has had the opposite effect. For that, I take full responsibility, and I want to apologize to you.Yahoo CEO Scott Thompson • Issuing a formal apology to the employees of Yahoo, amid a scandal over the possible falsification of his academic history, as we mentioned last week. Thompson claimed to hold a degree in computer science which he doesn’t — a fact that Yahoo initially called an “inadvertent error.” Today, however, they’ve announced the formation of a three-member panel to investigate Thompson’s record. source (via • follow)
Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose – putting our users and advertisers first – and we are moving aggressively to achieve that goal. Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.Yahoo CEO Scott Thompson • In a statement regarding the thousands of layoffs it plans to enact. The company’s press release says that it will “radically simplify” how it build products.
Yahoo picks the new boss: Scott Thompson, the president of eBay’s PayPal division, has been picked by Yahoo as its new CEO, replacing CFO Tim Morse who filled that role in an interim capacity. This marks the fourth CEO Yahoo has turned to in under five years; the company, once a giant in the world of search engines, has understandably suffered with the seemingly unstoppable ascendancy of Google over the past decade. Thompson faces a tall task — he’s being looked to, as chairman Roy Bostock said, “reignite innovation and drive growth” — this for a company that’s had a ton of trouble with both. source