Towards the end of February, Groupon CEO Andrew Mason was fired. Groupon recently filed an 8-K form with the SEC to disclose how much that Mason’s replacements will be making. Groupon co-CEOs Eric Lefkofsky and Ted Leonsis will make a combined $410,000 salary. Lefkofsky will receive $200,000 and Leonsis will receive $210,000 on an annual basis. If a replacement CEO is found, then they will receive a portion of that salary.
The 8-K points out that these salaries match the amount that each of them would have been paid if they remained directors of Groupon. This appointment invalidates them from receiving the Director Compensation Plan.
Groupon also gave a bonus to Jeff Holden, SVP of product management, for 2014 and 2015. Holden will be paid a guaranteed bonus in 2014 and 2015, which is $500,000 per year. Holden will be required to stay with the company through the transformation in order to get the bonus.
Holden joined Groupon when the company acquired his startup, Pelago. Pelago was known for creating an app similar to Foursquare known as Whrrl. If Holden leaves Groupon before December 2015, he will not receive either year’s bonus.
Lefkofsky made around $382 million by selling Groupon’s shares pre-IPO so he clearly does not need to take a large salary from Groupon. Groupon posted quart
Last month, Groupon posted quarterly revenues of $638.8 million with an operating loss of $12.9 million. Revenues beat analyst expectations, but they failed to meet expectations for their operating loss and loss per share of 12 cents.