CEOs have often found themselves jobless for padding resumes. The CFO of Veritas was relocated after a false MBA from Stanford. The CEO at RadioShack did not have the degrees he had claimed, leading to resignation. The Lotus CEO resigned after his claims of a Ph,D from Pepperdine were found false. CEOs are the face of the company and need to be trusted; if a CEO was unethical once they can be unethical again. This is why a CEO will face termination for padding a resume.

However, the uncomfortable part for Yahoo is who found it. Loeb has been a problem for Yahoo! for a while now, and if they are seen giving in to a dissident shareholder it would undermine them during any internal arguments.

Unfortunately for the company, they find credibility more important than this, and will probably end up firing Thomson to save public image - no matter what the internal disputes may arise from it.