Story first appeared on USA Today.
Yahoo's board will probe the vetting process of the recently hired CEO, who has come under fire for a résumé inaccurately stating that he holds a degree in computer science.
The move comes as pressure mounts from activist hedge fund Third Point, Yahoo's largest outside shareholder, to axe the CEO, who is in the midst of efforts to turn around the troubled company so it can better grow its core advertising business and gain greater traction with younger mobile users of social media.
Yahoo on Tuesday said it has formed a special committee of recently appointed board members to investigate his academic credentials and the review process in his hiring.
In a memo, the CEO late Monday apologized to Yahoo employees for the inaccuracy in his résumé that claimed he had a computer science degree from Stonehill College, near Boston. He has a degree in accounting. The résumé claim appeared on the company's website as well as in documents filed with the Securities and Exchange Commission.
Actions taken by the board are standard and reasonable moves to take under these circumstances, says an associate professor of law at Santa Clara (Calif.) University School of Law.
He was hired in January to revitalize the company. As part of his plan, he last month laid off 2,000 employees, or 14% of Yahoo's workforce. He is also looking to close or sell about 50 Yahoo services and is exploring selling part of Yahoo's roughly 40% stake in Alibaba Group, a thriving Chinese Internet company that investors view as Yahoo's most valuable asset.
Also happening: Third Point aims to gain four seats on Yahoo's board, which Third Point's manager believes he and three allies could help boost Yahoo's fortunes. Many believe that the CEO has put the company in a very, very difficult position at a critical point in its history.
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