Scott Thompson, who was appointed as the head of the company in January, has announced his decision to step down as the Chief Executive Officer (CEO) of internet major, Yahoo Inc.

Thompson agreed to step down over the weekend amid growing calls for him to step down over an inaccuracy in his educational credentials, which were published repeatedly over the years. The board found evidence that contradicted his claim of innocence over the matter and this made him step down from his position, according to people closer to the matter.

The issue is around Thompson's exaggeration about his education at Stonehill College, near Boston where he was graduated in 1979. Records on Yahoo website and an legal document filed with the Securities and Exchange Commission showed that he had received two degrees from the institution. However, Yahoo confirmed that Thompson received only an accounting degree from Stonehill. The company has removed all references to his educational credentials from the website.

The calls for resignation of Thompson over a lie about his academic credentials were getting stronger and he had to step down from the post merely four months after taking over the troubled internet giant.

Shareholders and others said that Thompson should step down because he allowed a false detail about his academic credentials to be noted for several years. A company shareholder, who exposed the irregularity about Thompson's academic credentials, has been leading the demand for his resignation.

Activist hedge fund manager Daniel Loeb said on Friday that the board of the company should let Thompson go or face legal action.