Struggling Groupon announces replacements for two directors
Groupon Inc. is bringing on two new directors to replace Starbucks Corp. Chief Executive Howard Schultz and venture capitalist Kevin Efrusy on the board.
The two are Daniel Henry, chief financial officer of American Express Co., and Robert Bass, a retiring vice chairman at consulting firm Deloitte. They will serve on Groupon’s audit committee.
Henry was appointed April 26 to replace Schultz, who stepped down. Bass is retiring from Deloitte on June 2 and will stand for election at Groupon’s annual meeting that month to replace Efrusy of Accel Partners. Efrusy is not standing for reelection.
In a statement, Groupon Chairman Eric Lefkofsky said Henry and Bass bring “deep financial, accounting and operational experience†to the board. The changes leave the total number of directors at eight. The group includes Groupon co-founder and CEO Andrew Mason; Ted Leonsis, vice chairman emeritus of AOL; and Mellody Hobson, president of Chicago-based Ariel Investments.
Groupon indicated last week that its board might be changing its makeup after its initial public offering last year. The Chicago company has struggled since going public. In late March, it restated its fourth-quarter and full-year revenue, citing “material weakness†in financial controls. Groupon’s stock has seen a dramatic drop since its disclosure, falling more than 40%.
After the announcement shortly before the market close Monday, Groupon shares closed down $1.27, or 10.6%, at $10.71. They were up 4 cents in after-market trading.
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