Yahoo CEO Wrongly Claimed To Have Degree In Computer Science
jmcbain writes "Scott Thompson, Yahoo!'s CEO who was hired on January 4 of this year, was found to have lied about his CS degree from Stone Hill College. Investigation from an activist shareholder revealed that his degree was actually in accounting, and apparently Thompson had been going with this lie since the time he served as president of PayPal's payments unit."
Yahoo needs an accounting CEO more than a cs one lately.
If you mod me down the terrorists will have won
Pathological disregard for others makes a more ruthless and efficient leader, isn't that what shareholders want?
Was he able to do the job well? Does it REALLY matter? If he got away with it that long I say good for him, if his employers aren't smart enough or care enough to verify they weren't really that concerned about his credentials.
Now that everyone realizes he's not an IT guy, he'll probably ask for a raise.
"Investigation from an activist shareholder revealed that his degree was actually in accounting" Back when I worked for Disney we called Eisner that guy from accounting, it's actually a Berke Breathed quote we borrowed. It's amazing how many of these supposed CEOs are glorified accountants. Kind of explains the whole lack of imagination in big business.
If you can get to the top ranks of a tech company without a CS degree, it's almost like a big FU to all of us that do hold CS degrees. I've always was kind of awed by people I work with that understand everything I do about technology and even CS concepts but don't have a degree. It's humbling and enlightening. Despite being 10x harder, a BSCS is kind of treated like a liberal arts degree these days. It's something to be personally proud of, but it seems to hold no real weight on ones resume. At least, that's how it seems.
So, IMO that makes it an even bigger red flag when someone claims to have such a degree when they don't. It speaks to me of true cluelessness.
Unless, of course, you're a politician, CEO or other Important Person. Then you can pretty much get away with it with little more than a slap on the wrist and a tsk-tsk from the media.
A quick Google search would have exposed his charade a long time ago.
If he were labor, HR would have sent security to escort him out of the building before this even got to press.
That must be one hell of a golden parachute he's packing.
I asked my son if he broke the neighbor's window, he "wrongly claimed" that he didn't.
My boss asked me if I was coming in to work today and I "wrongly claimed" I was ill.
"Sweetheart, I am not "wrongly claiming" when I told you I never slept with your sister. It was an "inadvertent error" ..I *LIKE* this !
Why do CEO's in this country think they are above everyone else, demanding excessive compensation and feel they can prevaricate with impunity when it suits their purposes?
Because people continue to give them excessive compensation, and they keep getting away with the lies... In other words, they believe that because it is true.
Swift describes them as, filthy and with unpleasant habits, resembling human beings far too closely for the liking of protagonist Lemuel Gulliver
Oh fer crissake...
The man lied. Nothing more to it than that
"wrongly claimed"... give me a break.
File under 'M' for 'Manic ranting'
Actually, the CEO of one company is on the board for another company whose CEO is on their board. There is a site called theyrule tht tracks these connections to demonstrate the complex collusion/extortion going on among corporate leadership and their siphoning of wealth from the small guys that actually invest in their businesses. Decades ago, those milions went to the owners (stockholders), but as the coup has entrenched, the excess has become standardized and regularly increased.
Major Uh Oh!
Thompson has claimed this for more than a decade!
And the Yahoo Board Member who managed the vetting also has an "anomaly" in regards to "scholastic achievement", perhaps not now least of which is a question of corporate achievement.
So, the investigation now moves swiftly to the other Yahoo Board members and the operating officers: what are their anomalous scholastic and corporate achievements!
'Fed eyes' are upon Yahoo.
PS
IRS accountants spot an 'anomaly', and report to FCC and DoJ.
Lordy O' Lordy (LOL).
Nah, it's only the lower classes who get such checkups, sometimes middle-class'ers. Sandwich makers get drug tested, bus drivers get FBI background checks, it totally makes sense in a certain light.
When I was a kid, we only had one Darth.
That link should be blocked by slashdot and people who post it are lame.
Someone who worked at PayPay lied? I'm shocked!
I'm an American. I love this country and the freedoms that we used to have.
I say fire him immediately. Having someone at the top who egregiously lied for so long sets the tone for the whole company. That's not how you want to do business, so that's not who you want as your leader.
This brings back memories of the controversy with regard to Cringely (pen name) having a Ph.D. from Stanford. Some of us old-timers might remember that this is a topic of great discussion here.
Does this mean degrees in computer science are worthless?
Tech Jobs needs taring / vocational / tech schools / on the job.
That proves certain learning capability a long with real tech skills. CS for most tech jobs is to long with lot's of classes that are off base for most tech work + all the other non tech class filler and fluff that comes with college.
There are lot's stories of people with A ba or higher in CS coming on the job with no idea on how to do tech work. Now why can't people think the same way about tech schools and community colleges?
But tech schools and on the job learning are better for people with disabilities and saying BA needed may be barking the law.
There are people with disabilities who can do the job and who can take on line / tech school classes but are not cut for classes in a fashioned college setting and not hiring them just because they don't have a BA is discrimination.
doctors are not the same as IT work and they have med school and residency.
For IT you can cut the 4 year college replace med school with a mixed tech school / vocational with real jobs skills plan.
Do you really want IT guys to have 6+ years in the class room and have to pay them A lot to pay off 100K+ loans??
They give themselves excessive compensation. Remember, the company is controlled by a board made up of the CEO's buddies, and the CEO likewise sits on the boards of their companies. They all vote to rob the shareholders, and the shareholders can't do shit about it. Heck, its only thanks to Obama that we even get to have a non-binding vote on compensation. Prior to that we couldn't even complain as they robbed us. And it's not like we can take our money elsewhere, because every big company does it, and if you don't invest somewhere, you'll never be able to retire.
Seriously, if you ever want to feel utterly helpless and abused, try to vote your shares.
more like any degrees is unless if you can do the job or learn it on your own or take NON degree classes.
CS from 1975 has of lots obsolete things in it any ways so may this is a sing that TECH Needs a some kind of way to say I have on going education with out it just being masters , PHD.
under the badges systems he should have equivalence by doing the real work.
What exactly does your degree prove?
No brain, no pain.
Failure for Yahoo's board to terminate his employment with cause for fraud would be a clear indication of corruption at the highest levels in the organization.
I would not be surprised if he were to stay. That's just how those people think. It's basically the good 'ol boy system in the modern day.
I think you mean dick...
Nah, OP probably meant a naked short seller.
http://www.deepcapture.com/introduction-to-the-deep-capture-analysis/
Excessive compared to what? A minimum wage earner or perhaps even a median wage earner? Could just anyone off the street run a Fortune 500 company well or even just capably? Could you? If you were the CEO in charge of any of these companies what would you have done differently? Would you have created a better shareholder return than the existing management? People like to complain about overpaid CEOs, and some of them are overpaid, but running a big company well is a lot harder than it looks. The best CEOs, boards and management provide substantially better results and superior shareholder value as compared to the worst. Most shareholders agree that good management is worth paying for, especially when there are billions of dollars at stake, as there are in the biggest corporations, where even modest mistakes can cost millions. The non-binding votes on compensation mostly bear this out. With a few notable exceptions, Citi being prominent among them, most CEOs earn their pay packets in the eyes of investors. If you don't agree or think that you could do better, sell your shares and found your own company to compete against your "incompetent" competitors.
CEO pay in the US recently hit an all time high. In 2011, they made 209.4 times the average worker. Their pay has increased 127 times faster than worker's pay over the last 30 years. In the period from 1978 to 2011, CEO pay rose by 725%, while worker pay rose only 5.7% in the same period. This is in stark contrast to worker productivity which rose 93% in the same 30 year period. So, the average worker is doing nearly double the work for a less than 6% raise over a 30 year period. Unfortunately, I have not seen any stats on CEO productivity, but I doubt they are doing much more than they were 30 years ago.
You do the math... CEO's will lie as much as possible remain in the position to keep their massive pay packages. The gap between CEO pay and average worker pay is widening at an alarming rate, with the CEO absorbing a very large percentage of company net profits compared to 30 years ago.
I'm shocked, SHOCKED to hear that the 1% habitually lie, cheat and act unethically to get ahead.
SAY IT AIN'T SO.
There are stories in every field like that. An aerospace engineer was talking to one of my classes and said that he knew aerospace engineering when he graduated. When he got to work he spent the first 2 years learning real aerospace engineering because what he thought he knew wasn't good enough for the real world.
How can we be sure he won't cook the books like the Eron folks did? Let's tar and feather him!
how much did automation rose in the 78-2011 timeframe?
Probably more than 2x.
Might account for higher productivity of the average worker.
I agree with the greed though. CEO paychecks are excessive. If you built the company from the ground up, okay, you can cash in as far as I'm concerned. But just being planted at a company that was doing business before you joined and still will after you left (hopefully) doesn't justify 7 (or 8!) figure salaries.
I would have said that I had a PhD in CS and was the l33t king hacker of the world, and then when they found out I was lying I'd say "joke's on you, SUCKERS!" and retire on whatever CEO's pay I had acquired.
"When information is power, privacy is freedom" - Jah-Wren Ryel
As someone with an undergrad and post grad in business, I feel compelled to answer your confusion between worker pay and executive pay. For the worker, they're focused on their specific task, a tacical viewpoint of the business unit they are responsible. The worker answers for the actions of him/herself and not the actions of their fellow co-workers. When profits are down, investors don't ask the worker, they don't fire the worker, they look at the leadership team. It's not the worker who's neck is on the line if the company is unprofitable, and the worker will most certainly never face lawsuits from investors, the government, and other stakeholders.
The CEO on the other and is responsible for the actions of every worker that represents the company. They're responsible for the financial well being of the organization, the brand, and the relationship with every stakehokder. Like a game of chess, the CEO is responsible for the strategic direction of the business with not just today's direction but tomorrow's and the years ahead. In short, the worker is responsible for one thing, his/her work. The CEO is responsible for the work of everyone underneith him/her.
As far as compensation, most CEO's compensation come with base salaries and huge amounts of stock ownership to incentivise the CEO to return higher profits for the shareholders. So it would make since that CEOs receive a large stake of the profits.
Source for those numbers? I really do not doubt them at all, just wondering what your source is.
This lie by Scott Thompson is pretty minor compared to the lies told by Joe Biden about his academic credentials:
http://en.wikipedia.org/wiki/Joe_Biden_presidential_campaign,_1988#Academic_revelations
They should be paid in only stock and not cash. Because as long as they have both, they don't really have any responsibility to the company. See the financial crisis. They fail and the company gets bailed out. When CEOs are "held responsible", they take their millions and get hired elsewhere.
In principle, what you are saying should be the case. But it isn't.
If you built the company from the ground up, okay, you can cash in as far as I'm concerned.
well, in that case they would probably be cashing on their ownership - not on their status as an appointed ceo.
but the way it's sold to boards is that if they don't pay excessive amounts for even poorly performing ceo's they will not get a good ceo. which is kinda dumb, if one thinks about it.
world was created 5 seconds before this post as it is.
When profits are down, investors don't ask the worker, they don't fire the worker, they look at the leadership team.
..I think you'd need some more real world expertise. they might look at the leadership team and notice that the leadership team made policies that guaranteed them bonuses and good pay regardless of actual company performance though!
true, investors don't directly fire the worker - they just ask the leadership team to do so.
what's been increasingly fucked up with big business has been really, really, really stupid bonus matrixes copied from even bigger businesses(there's more credibility in pushing it through if the tactic was invented at some other, at one point successful company). so you have things like a biz losing a billion dollars but ceo still raking in bonus - or ceo raking in bonus on selling all company assets that were wroth anything - that the company needs and then needs to pay for using to a 3rd party - at firesale prices during one year.
world was created 5 seconds before this post as it is.
Sounds as if they are perfect for each other.
The degree started off simply as a tool to get your feet in the door of a company. Now days many think that you must be functionally retarded if you don't have one, which is just foolish: After you've got the work experience, degrees don't mean shit. If you can get the work experience without the degree, you can make it thru your career without that stupid piece of paper.
So this is a whole bunch of thunder signifying nothing. Sure, probably shouldn't have lied about it, but of all the destructive corporate lies I've heard, the wrong degree is way under the threshhold of "Oh Noes!"
We have better things to worry about. This is a stupid distraction.
Only idiots and bigots, and Republicans assuming they do not fit into one of the previous categories, are quibbling.
When profits are down, investors don't ask the worker, they don't fire the worker, they look at the leadership team. It's not the worker who's neck is on the line if the company is unprofitable, and the worker will most certainly never face lawsuits from investors, the government, and other stakeholders.
"Bullshit rolls downhill"
It blows my mind how the most insightful post in the entire discussion is a 1, but immediately below it, some ignoramus screaming "FIRE HIM IMMEDIATELY!!1" is modded up to 5, Insightful.
I must be new around here.
erm. What's "taring"?
http://www.thefreedictionary.com/Taring isn't helping me much on this one.
Anyway, CEO isn't a tech job.
I also think that companies these days are somewhat larger than they used to be. Just look at the likes of Apple, Exxon or the banking industry. So yes - I'd say one CEO today probably does the work of a couple of CEOs 30 years ago.
I have seen this for the better part of 25 years. The guy was somebody's friend on the board and he had to "enhance" his resume so the rest of the board would vote him in. Is it fraud? Yes. Is is "accepted practice?" Yes. Just don't ask for a birth certificate!
Slashdot totally needs a new mod "Other: Fill in _____"
This is +1 Buddhist!
My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
When profits are down, investors don't ask the worker, they don't fire the worker, they look at the leadership team.
...and ask them, "What are you doing to reduce costs?" To which the "leadership team" invariably answers, "Well, of course we're looking to improve efficiency wherever we can, particularly by rightsizing and right-shoring across the organization." The usual result: the leadership team continues on, possibly accepting a small cut in their bonuses as a "show of good faith", and the teams doing the actual work get butchered.
And when the house of cards finally does collapse, it seems that those top-level execs quickly land new top-level positions, while the workers struggle to find a position paying a reasonable fraction of their previous salary before their unemployment benefits run out.
No, I don't claim to know how it is across the entire economy, but that's what I've seen at a number of start-ups and large companies. At none of those companies have I seen the top-level execs fall without a large number of "workers", if not the entire company, going first.
Lying on an SEC document is more serious than run-of-the-mill resume puffery. The time to clean up any inadvertence or carelessness is before filing sworn documents.
Investors deserve complete candor from CEOs. The degree he received in 1979 is not important; lying about it in 2012 is.
Inflated resumes are indeed common among Silicon Valley cubicle slaves, but Thompson should be held to a higher standard. That, as they say, is why he gets the big bucks.
If anyone needs to beef up their resume, Japanorama is giving away Ph.D. diplomas at http://www.japanorama.com/images/diploma.gif
So why not show up at the shareholder meeting, apply for your 3 minutes at the mic, and suggest that? If you think that the other shareholders would agree then you can try to get it on the ballot as a shareholder resolution or you could simply vote 'No' on the non-binding pay resolutions that are now required by law. However, I think that both you and I know the score here, so one so one of two things is true:
1. You're right and anyone can run a Fortune 500 company which means that me and all of the rest of the shareholders are idiots for continuing to tolerate a CEO and board of directors, all of whom are paid millions, to run the business on our behalf.
OR
2. A good CEO and board, generally costing millions, and not just anybody really are necessary to run a Fortune 500 company. Me and the rest of the shareholders are right to continue paying the CEO and the board and you don't know WTF you're talking about.
Now, which do you suppose is more likely? (don't strain your big brain thinking too much about it m'kay)
I could hire 500 full-time expert advisers to work together and do my job, and sit back and enjoy the excess 50% of the CEO salary, and do a better job than any average CEO, yes.
So start your own company and prove it by eating everyone elses' lunch.
The better question is, do you really think a single CEO does the combined work load of 1,000+ men?
Of course not. At the Fortune 500 companies there are already 1,000+ expert managers and smart men working beneath the CEO and ultimately reporting to him (or her) via the chain of command. The point is that somebody must ultimately be in charge. For example, every government on this planet has a head of state or a single person who is in charge and and ultimately held responsible for success or failure (here in the US we call that person the President). Large corporations likewise require a singular leader or executive to call the shots, make final decisions, and generally get things done.
Now, how much that person is paid is an arguable point. It depends upon the size of the business, the consequences of failure, and the perceived difficult of running the business well. To use an analogy here, a good CEO and board will adroitly steer the boat through the rapids and emerge out the other side while the bad CEO and board will smash the boat on the rocks, capsize the it and dump everyone into the water. The quality of CEOs and board members (and therefore how much it's worth paying them) is demonstrated by how well they react under market pressures and how well they steer the ship of the corporation unerringly towards profitability, damn the torpedoes. Is there a difference between a Steve Jobs, a Jack Welch or just anyone else? You bet there is AND it's worth paying for.
Yes, excessive compared to a median wage earner. It used to be that the boss made 30-50 times his average employee. Now it's more like several hundred times.
Do you feel this way about other highly paid people or just CEOs of big corporations? For example, Kobe Bryant is paid ~28.7 million dollars per year to play basketball for the LA Lakers. Is that excessive? Is he worth it? Are the best CEOs less talented or simply overrated? What I'm getting at here is that few, if any, play basketball as well as Kobe Bryant and without him and others like him nobody would watch the NBA and billions of dollars in revenue wouldn't be collectively earned by the league, the owners and countless other businesses involved, directly or indirectly, with the NBA. If you believe that average people can run big corporations well, then you probably think that CEOs are overpaid. However, if you believe that the difference between a good CEO and a bad one is hundreds of millions or even billions of dollars less in profit to the corporation (i.e. a losing season); perhaps the good CEO is worth paying for? It's all about supply, demand and what the market will bear, not how much his (or her) labor is "worth". This would fall more generally under the criticisms over what's called the Labor Theory of Value or even more generally who creates value and therefore who can demand what share of that additional value that's created.
Have CEOs somehow become ten times as awesome in the last twenty years?
I would argue that management, in general, has definitely improved in the last twenty years. There are more and smarter people coming up all of the time and competition has only increased. It's true that the role of the CEO has become more prominent during that time period than perhaps it was in the past, and it's a difficult question to ask because there are so many variables, but I would say that at the very least CEOs have, in general, also improved substantially in the last twenty years, yes.