A Clash Over Strategy and Vision Led to the Resignations of Expedia’s CEO and CFO

The departing executives will be entitled to a termination package that includes severance and equity, a federal filing states
Updated: Wed, 12/04/2019 - 15:03
 
 
  • The departing executives will be entitled to a termination package that includes severance and equity, a federal filing states

Expedia Group Inc., a leading publicly traded online travel agency, announced today that Chief Executive Officer and board member Mark Okerstrom as well as the company’s chief financial officer, Alan Pikerill, have resigned from the company as a result of failing to retain the confidence of the Expedia’s board, headed by Chairman Barry Diller.

Both executives will be entitled to severance and an “equity award acceleration” in accordance with company policy, according to a filing with the U.S. Securities and Exchange Commission. The details of their termination packages were not outlined in the SEC filing.

Effective immediately, Diller and Peter M. Kern, vice chairman of Expedia’s board, “will jointly preside over the company’s day to day operations,” the SEC filing states. In addition, the company’s chief strategy officer, Eric Hart, will take on the role of acting chief financial officer as well as continuing in his current role.

“Ultimately, senior management and the board disagreed on strategy,” Diller said in a statement included with the SEC filing. “Earlier this year, Expedia embarked on an ambitious reorganization plan with the goal of bringing our brands and technology together in a more efficient way. This reorganization, while sound in concept, resulted in a material loss of focus on our current operations, leading to disappointing third-quarter results and a lackluster near-term outlook.” 

Diller added that the company’s board took issue with that outlook as well as Okerstrom and Pikerill’s vision for growth, which the board believes can be accelerated in the year ahead. “That divergence necessitated a change in management,” Diller said.

Diller lauded Okerstrom ― a 13-year veteran of Expedia and its CEO since 2017 ― for his service to the company and wished him and Pickerill the best for the future. Diller added that as a sign of confidence in Bellevue-based Expedia’s future, he plans to purchase additional company shares.

Related Content

The broadening coronavirus outbreak forces the Carnival Corp. subsidiary to implement a 60-day pause

The broadening coronavirus outbreak forces the Carnival Corp. subsidiary to implement a 60-day pause

Visitor spending rises an ‘impressive’ 3.6%

Visitor spending rises an ‘impressive’ 3.6%

The Asian hospitality company in is now hiring for its new Lotte Hotel Seattle, which is set to open in June

The Asian hospitality company in is now hiring for its new Lotte Hotel Seattle, which is set to open in June

The wintry charms of Park City are closer than you think