After several good days of stock performance, Groupon’s stock is back on the decline today after a board meeting concluding yesterday without resolving the company’s leadership limbo.
Earlier in the week, after several reports appeared saying that the Board was “seriously discussing” replacing CEO Andrew Mason, Groupon’s stock began to rise.
Yesterday evening, after the market close, Groupon reported that its board meeting had concluded with no apparent change at the top–or, alternatively, with a strong statement of support for embattled CEO Andrew Mason.
So now the stock is down again.
Leadership limbo like this is a terrible position for companies to be in. The whole organisation can essentially freeze up as employees wait for resolution.
The board leaks put CEO Andrew Mason in an extremely challenging position, one that will be hard for him to recover from. And the stock’s reaction to the possibility of the CEO change (up) and news that there would apparently be no CEO change (down) won’t help him.