Advertisement

HindustanTimes Fri,11 Jul 2014

Groupon chief sacked, but jokes on himself

Reuters  San Francisco, March 01, 2013
First Published: 12:37 IST(1/3/2013) | Last Updated: 02:07 IST(2/3/2013)

Groupon Inc fired Andrew Mason as chief executive officer on Thursday, ousting a co-founder who captured headlines with his quirky style but failed to reverse a crumbling share price or stop a gradual erosion of its main daily deals business.

The leader in Internet daily deals launched a search for a new leader to turn the company around, the same day its stock slid 24% after a dismal quarterly results report.

In an unusually candid post-firing letter, Mason - known for his atypical sense of humour - confessed he was getting in the way of the company he co-founded just a few years ago, and had failed in his role as leader.

"After four and a half wonderful years as CEO of Groupon, I've decided that I'd like to spend more time with my family. Just kidding - I was fired today. If you're wondering why... you haven't been paying attention," Mason wrote in a memo addressed to the People of Groupon.

"From controversial metrics in our S1 to our material weakness to two quarters of missing our own expectations and a stock price that's hovering around one quarter of our listing price, the events of the last year and a half speak for themselves. As CEO, I am accountable."

The company said in a statement that Mason was asked to step down.

Co-founder Eric Lefkofsky and board member Ted Leonsis will lead the company in the interim, until a permanent CEO is found.

The company plans to hire a recruiting firm for the CEO search, a spokesman said.

The Groupon board met on Thursday and decided to replace Mason. No Groupon board members will be considered as CEO candidates, according to a person familiar with the board's deliberations.

Newly hired chief operating officer Kal Raman - brought onboard to turn around global operations - is a possible candidate. However, the company is likely to favour an outside candidate who has e-commerce and global experience, said the person familiar with Groupon's strategic thinking.

Groupon declined to comment on CEO candidates.


Advertisement
more from Business

Jaitley woos salaried class, raises income tax exemption limit to Rs 2.5 lakh

The finance minister raised the exemption limit in personal income tax from Rs 2 lakh to Rs 2.5 lakh. He also raised the tax exemption limit for investments to Rs 1.5 lakh from the current Rs 1 lakh under Section 80C of the Income Tax Act. Full text of speech
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved