Fired Groupon CEO Refreshingly Candid about Departure

Gerry Images

Who knew a wealthy CEO could deliver an honest assessment of the reasons for his ouster?  Andrew Mason, who was fired the last day of February, left Groupon with a grand total of $378.36, half of his annual salary.  Don't shed a tear yet.  Prior to Groupon's IPO in 2011, Mason sold $28 million in shares and still had stock valued at $1.3 billion after the IPO--not a bad haul for a man in his early 30's.  Readers should note, however, that the value of that stock significantly decreased after the IPO under Mason's leadership.

Here's the kicker!  Mason actually came clean about his role in Groupon's falling revenues in an online farewell letter to employees.  He stated that he chose to post it online because it would be leaked anyway.  Starting with the salutation, "People of Groupon," he continued, "After four and a half intense and 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. From controversial metrics in our SI 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."

That admission and acceptance of responsibility stands out as decidedly different from the typical CEO departure that includes a golden handshake, a golden parachute, and no requirement to take responsibility for the company's failings.  Given that the average CEO in America earns 380 times more than the company's average employee, most CEO's have no reason to pay close attention to the daily operations of the company or worry about losing their livelihood.  Mason will not suffer financial hardship, but he did open himself to embarrassment about his failure to maintain profits.

He closed his letter with a bit of wisdom to which every CEO should adhere.

"If there's one piece of wisdom that this simple pilgrim would like to impart upon you: have the courage to start with the customer. My biggest regrets are the moments that I let a lack of data override my intuition on what's best for our customers. This leadership change gives you some breathing room to break bad habits and deliver sustainable customer happiness - don't waste the opportunity!

I will miss you terribly.

Love,

Andrew"