Thompson Leaves Yahoo with No Severance but Makes Millions

Yahoo parts ways with CEO and both agree not to slander each other

By Shawn Hess

“As you may recall, Yahoo and CEO Scott Thompson have agreed to part ways as of yesterday. Thompson, who found himself locked in a battle with activist Yahoo investor Dan Loeb and his venture capital firm Third Point, was accused of providing false credentials in his company biography and other official documents. Doing his best to sidestep the issue, Thompson urged the Yahoo staff to get on with business as usual, but a formal investigation was already underway.

With pressure for Yahoo to react, and pressure on Thompson to respond to the allegations, the CEO announced his formal plans to resign late on Sunday. According to Thompson, he was recently diagnosed with thyroid cancer, and is leaving in order to focus on getting treatment, but doesn’t wish to disclose any further details about his personal health issues. His resignation represents a win for Third Point in the proxy battle against the Yahoo board.

With Thompson leaving for medical issues we were left wondering if Yahoo would pay him his severance from his employment offer in light of the recent false credentials scandal, but today we have a definitive answer. Yahoo is claiming they have a “cause” for his departure, which frees them from their obligation under the employment offer Thompson originally signed. Essentially, the false credentials debacle cost Thomson his severance.

Before you go feeling too bad for Thompson listen to what he does get to keep. Yahoo has agreed to award him his “Make-Whole” cash bonus and his restricted stock options, both of which sum to about $7 million. In return, he has signed an agreement to not disparage Yahoo or Yahoo disparage him in any future claims. Basically, they agree the separation is mutually beneficial.”

Of course, Yahoo should have done better due diligence and gotten the correct information. Didn’t Yahoo – or its search firm if they used one – verify the degree before he was hired? This is pretty routine these days. If it didn’t verify, they could ask for an explanation before jumping to a conclusion of falsification. Sometimes schools or candidates make mistakes – after all we are dealing with large, impersonal databases.

From my perspective with 10 years of executive search recruiting experience, it’s hard to imagine that a dual degree in Accounting and Computer Science rather than a single degree in Accounting would have adversely affected the candidacy of someone whose credentials made them the choice for a CEO position at a major corporation. While we don’t – and may never – know all the details accurately – it’s hard to explain the motivation for making this claim falsely. Possibly, Yahoo made it a requirement for the job – but wow, that sounds like something that could have been worked around for a great potential candidate. Or maybe it was a hallucination in Thompson’s mind that a minor in Computer Science or even a substantive amount of computer science courses added up to a “degree”. Or maybe it was a careless error on Thompson’s part. Of course, if that were true, you’d think that both Thompson and Yahoo could have done a “mea culpa” and moved on without it becoming an issue of falsification. Or maybe, Thompson dug in and defended his Computer Science “degree”. Or maybe politics blew it out of proportion and Yahoo got boxed into a corner. Or maybe it gave Yahoo an opportunity to reverse a hiring decision it was sorry it made.

We’ll never know – my comments are pure speculation. The lesson for us is “keep it honest and accurate”. Make sure your information will verify the way you present it. If you have a real issue holding you back, maybe you can fix it, for example by getting the degree or certification you need – or a surrogate. There are lots of ways to communicate information accurately that also puts your best foot forward. And, if a particular employer doesn’t want you, move on. If you are talented and execute a good job search, the right opportunity will emerge.

As a career coach who helps many executives to develop their resumes and bios, structure their messages, and put their “best foot forward”, the #1 rule is NEVER LIE. It always catches up with you and, in the meantime, it compromises your personal integrity as well as the market’s perception of integrity and judgment of the people who have or will hire you. This is a lose-lose for everyone. If you can’t get the job based on who you are, find another job or fix your credential problem – e.g. get a degree!

There are three main places where misrepresentation takes place: Credentials, job titles, and credit for work and/or contribution.

Credentials: You should expect that your credentials will be verified, especially college degrees. Companies that do verify will request your authorization for them to obtain that information. Even if they don’t verify, you are not home free. In the case of Scott Thompson, the whistleblower was Daniel Loeb of Third Point LLC, Yahoo’s largest outside shareholder, who brought the discrepancy in Thompson’s education background to light. Even if you don’t have a degree or have inactive licenses or certifications, you can add value to your credentials. For example, if you attended college but did not finish, you can write John Alma University, Business Management Program, 1999 – 2001, showing that you attended college. If you are currently in a degree program, you can write Great Plains University, MBA expected 2013. If you have previously held credentials that are no longer active, just say so. For example, Top Secret Security Clearance (inactive) or Tennessee Real Estate License (inactive). This shows that you know the stuff and once passed the test, adding credibility to you knowledge and abilities.

Job Titles: Verification of employment is often automated today, so it is especially important that the title on your resume, most importantly for your current job, match exactly what HR has in its records. If you have an unusual title or one that doesn’t communicate your role effectively, you can always add some descriptive terminology as long as it truly reflects the job you were doing, for example, Manager of Operations Staff [official title], Lean Manufacturing Task Force Leader [additional descriptive information]. On the other hand, if you had a “manager” title, changing the title to “director” or “VP” doesn’t cut it. You may be able to make the point by starting your job description by saying, Reporting directly to the Chief Marketing Officer…

Credit: Does it belong to you or to someone else? If the only word in your vocabulary is “I”, I did this and I did that, that will raise a red flag – and equally if the only word is “we”, we did this and we did that, you will be equally suspect. In one case, you are likely to be tagged as arrogant and unable to recognize the contributions of others. In the other case, you will likely to be tagged as a “wus”, lacking in leadership abilities and without personal contributions to the organization. So, if it is yours own it, for example saved or achieved. If not, clearly present your role. You might say led the team that or instrumental in or spearheaded.

Would your boss agree with what you are claiming – that’s a good test to keep you honest. Even if you think your boss wouldn’t agree, for example, because you believe you were actually doing his/her job, your resume is not the place to make that point or disrespect your boss. Stick with political correct ways to describe what you did that yet still reflect your exceptional contributions.

From time to time, the news media makes a flash by publishing statistics on the prevalence of lying or misrepresentation on resumes. I once took the time to see what they were calling “misrepresentations” and found that a great many of them were at best a stretch. It doesn’t mean that there are probably far too many instances of material misrepresentation, but in my business, I find that more often than not well intentioned people simply don’t know how to describe themselves articulately or structure information to communicate clearly.

In my experience, the path to reaching career goals is not always direct and sometimes the end goal adjusts to what happens along the way. For example, a friend of mine wanted to be a brain surgeon when she was in high school. By the time she got to college and enrolled in the pre-med biology program, brain surgery wasn’t so compelling. While she was in college, she serendipitously moved into the school’s Forensic Science program – a new program that was just being accredited – and found herself being mentored by the Department Head, a Texas Ranger who was one of the developers of the program. In her senior year, a friend sent her an application for an internship at the Health Department’s infectious disease laboratory in Boston, which she applied for and got. She now heads that lab and has been happily and successfully employed there for a number of years. Turns out, she loves that kind of lab work!

Not many of us who have “perfect” resumes – the right jobs, at the right companies, in the right progression, and the right timing between promotions. More often, we’ve taken some twists and turns and looking back we often recognize our successes were in part because of the journey we took in getting there. Few people have had careers with more with zigs and zags than me. Along with that came Monday morning quarterbacking, too – if only I’d been smarter, savvier, or made different decisions, I’d be richer, more famous, and even happier.

I’ve found in evolving my career and in growing my business, constant evolution prevails. Finding resources, listening to them, researching information – and the unavoidable time consuming and sometimes expensive “wrong turns” – has moved them to the next step and the next, each contributing to what needs to be done. Yet, I’m a person who really likes defined objectives and closure, which assures that I will care. I’m still working on being OK with not knowing.

Contacting them is another matter. They use their cell phones as their primary business phones, have not bothered to put an appropriate message on it, and often do not return calls (or emails) – even after multiple messages. I tolerate this because they are, in fact, making a critical contribution to my business that I don’t think I could get elsewhere. However, I believe their businesses are limited in generating revenue and surely not the successes that they could be. And, it’s frustrating for me to be their customer.

Similarly, I do business with some other people who traditionally have not taken credit cards. I pay them significant amounts of money on a regular basis, and I want to pay it by credit card. I have now convinced both of them to set up PayPal accounts. It is simple to do, and it is inexpensive – certainly easier, safer, and more convenient than most other options for the people they do business with.

I have also coached colleagues who left Corporate America thinking they would go into business for themselves. Many are clueless as to how to set up even the most rudimentary infrastructure for a market presence, client management, technology, accounting, and communication – and have done little to figure it out.

The common denominator here is the question of whether they really want to be “in business”. When pressed, some of them are “in hobby” and others are “in denial” – in either case, not fully motivated to put in the time or effort to really be successful. Their hearts just aren’t in it.

So, if this resonates with you, consider if you really want to be in business.

If you do want to be in business, you might consider creating a foundation for the business – at least the basics. Here’s a short 10-point checklist:

1. Company name: Choose it with your email and website domain in mind.
2. Domain: Once you have your name, lock in your domain.
3. Email: In the beginning, you can start with your company name at Yahoo or Gmail – eventually you will want use your company domain and host your account.
4. Website: Create a simple one using one of the many templates available. You only need a few basic pages – Home, Your Bio, Your Services, and Contact Information – to start. This website is informational – so you can send people there. Getting someone to find it on a search is much more complicated and expensive and comes later.
5. Communication: Cell phones are fine. Treat your cell phone as an “office” phone with an appropriate message – and be sure to check it often and respond professionally. Same goes for email.
6. Company Structure: Sole proprietorship, LLC or Incorporated/Sub-Chapter S – your choice here will determine what else you need to do.
7. Company Bank Account – and possibly Credit Card:
8. Accounting System: You need to invoice, record payments made by clients, make payments for purchases, and track expenses. This can be done “manually” (e.g. using MS Word and Excel) or you can use a small business accounting system like QuickBooks.
9. Technology: What do you need and will you help in supporting it? How long can you be without your computer or other technology and still serve your customers? What can be done with mobile devices and what requires something on your desktop?
10. Cost: Do you have the resources for a basic business set up?

And, of course, you will need to address your products/services, your target customers and how to sell to them, and your financial objectives and resources.

The point is that if you want people to find you, you have to show up in the places where they are looking and make it easy for them to connect with you. Whether it is promoting your business or finding a job or being on an industry’s radar screen, it is worthwhile to do some strategic thinking and take some targeted actions. This is not just being on Face Book or Twitter or LinkedIn – or having a website or writing a book. It is understanding what resources are out there, how to use them best for your purposes, and INVESTING your time and money selectively and wisely. Then, when opportunity is ready to knock, it can find your door.

Just in case you missed it, here they are:

• Creative
• Effective
• Organizational
• Extensive Experience
• Track Record
• Motivated
• Innovative
• Problem Solving
• Communication Skills
• Dynamic

This is the greatest “much ado about nothing” of the year. Described as “overused”, my clients immediately assumed that they shouldn’t use them. In fact, these words don’t matter at all. No one searches LinkedIn profiles for personal characteristics, e.g. “energetic”. They search for key functional skills, job titles, companies where employed, and credentials – which are what should be paid attention to in developing LinkedIn profiles!

These words have their place, since you are trying to build “pictures” for the reader of who you are. It should come as no surprise that the most used words will reflect the perceived employment culture of 2011. It is better, if you can, to find a more specific word that describes the characteristic or provide additional information that helps the reader understand what, for example, “creative” means in the context of your personality or skills, possibly with an adjective or descriptor. Nonetheless, there is nothing wrong with using these words.

Furthermore, these words will show up in LinkedIn recommendations. That’s fine. You want recommendations to “come from the heart”. Whatever the person writes is just fine. Many people read recommendations for trends – if all your recommendations say you are “creative”, you probably are, however the reader chooses to interpret it. If the recommendation is too boring, just hide it.

So, there is no need to lose any sleep over this list. Instead, keep your eye on the ball of what really matters.

I usually then follow up with, “What kind of job are you looking for?” And the answer that often follows is either “I’m willing to do anything” or a little more proactively “There are lots of things that I could do”.

It is true that companies are looking for people who are flexible and willing to do what the company needs. However, companies hire people to perform certain functions and need to be convinced of a prospective employee’s value added contribution in meeting those specific responsibilities. For a moment, put yourself in the hiring company’s shoes. What would be your response when a candidate says, “I can do lots of things. What job do you have for me?”

More specifically, in the case of “Utility Player”, that is not a job title. It doesn’t appear on anyone’s organization chart – with the possible exception of specially created jobs for existing employees to fill a specific need – and they still don’t call it “Utility Player”. “Utility Player” is a CHARACTERISTIC, not a job!

So, if you have fallen into this trap yourself or because others have extolled the virtues of your diverse skill set, I invite you to reconsider. What is the JOB that you can credibly convince a hiring manager that you can do and bring value to the company? You will then need to frame your personal presentation and resume to prove it.

Apparently one of his other colleagues, that I had also known in a prior life, voted for him and chose to provide him some feedback on his photo, which he then shared with me. Here it is:

I WAS GLAD TO VOTE FOR YOU. HOWEVER I AM SURE YOU LOST LOTS!!!!!!!!!!!!!!!!!!!! OF VOTES BECAUSE OF THE PICTURE. YOU LOOK DRUNK, NEANDERTHAL, JAWED & ADDLE BRAINED. THE SHIRT MIGHT OF PASSED IF YOU HAD LOOKED INTELLIGENT & WITH IT. JUST ON VACATION, BUT, THE PIC WAS A BAD CHOICE SINCE YOU ARE UP AGAINST GUYS WITH PHDs.

While the comments may be a little over the edge in their directness, the underlying point is worthy of consideration. People do make a lot of decisions based on how you look – and if you don’t match up with what they think and/or react to, sometimes it creates “noise” in the communication channel.

As a career coach who advises lots of people for are looking for advancement in their careers on the kind of photograph they need, I usually err on the side of conservatively professional – e.g. this is your professional face to the world and often a person’s first impression of you, for example, if they look you up on LinkedIn.  For most men, that means a nice suit and tie, no facial hair and a plain background for the headshot – you know, “corporate” – or at least a business casual look that is appropriate for their profession. On the other hand, if you are so well known and respected that you can get away with a casual, gee I had a great vacation photo, more power to you.