Groupon Inc (NASDAQ:GRPN) chief executive, Andrew Mason continues to hold his position, for now at least. The spokesperson of the company said, “The meeting is over and the board and management team are keenly focused on the performance of the company. And they are all working together with their heads down to achieve Groupon’s objectives”.
For long, Mason has been under fire for sliding stock prices and poor performance of the Daily Deals company. Groupon Inc (NASDAQ:GRPN) once considered one of the fastest internet growing companies, is reeling under constant pressure due to company issues, and negative factors impacting the daily deals’ industry overall. Living Social, a close rival stated recently that the company plans to lay off more than 10 percent of its workforce, or 400 employees.
Mason however, seems to be aware of the situation and said that he would step down from his position if that would be help Groupon. “When your stock is down 80 percent, your board is going to ask if you’re doing the right things,” he said at Business Insider’s Ignition conference on Wednesday. “I want what’s best for Groupon,” he said.
Groupon Inc (NASDAQ:GRPN) is the among the most prominent firms in the daily deals industry. The company’s business model has been questioned as of late. Many small businesses that used Groupon claimed that they ended up losing money. The company had a huge base of first timers, but it has failed in creating regular customers and keeping the momentum going.
Therese Poletti of MarketWatch.com asked, “Groupon has indeed developed a big brand, but is it a very valuable one? Or does it denote a cheap customer who would never come to your restaurant again unless he or she had a deep-discount coupon?”
The share price of Groupon Inc (NASDAQ:GRPN) declined to US$ 4.36 after news broke of the board decision regarding the CEO. The shares jumped earlier when Andrew Mason said that he would step down from the position if needed.
Questions are being asked about whether Mason has what it takes to be the CEO of the company. Though the idea of the business was his own, and he executed it brilliantly, does he have the enough experience which helps the company to grow in the long run? The 32 year old lacks the experience to run a huge organization, but perhaps has the innovation to compensate for his youth.
“The question is not whether Andrew is a good guy, but whether Groupon Inc (NASDAQ:GRPN) needs an Eric Schmidt,” said one person, a few weeks ago, close to the situation, referring to the former Google CEO who was brought in to work closely with the company’s two founders. “And there’s been a lot more pressure now on the board to consider this seriously”