The Yahoo chief executive officer resigned in connection with saying he received a degree in computer science and accounting when he only received a degree in accounting. Additionally, one of Yahoo's directors did not seek re-election as a director after it was discovered that her biographical information said she held a bachelor's degree in marketing and economics when her bachelor's degree was in business administration, with specialties in marketing and economics.
This Yahoo debacle serves as a reminder for Boards of Directors and relevant committees to conduct thorough background checks prior to hiring a senior executive, appointing a new director or recommending for nomination a new director candidate. Additionally, at proxy season or in preparing a registration statement, a company should carefully review and compare information contained in director and officer questionnaires with biographical information contained in the company's Form 10-K, proxy statement or registration statement. There are often changes in a director's or officer's positions with unrelated companies or there are inconsistencies between information in the questionnaire and the biographical information contained in the company's Form 10-K, proxy statement or registration statement that need to be reconciled.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.