Feeds

Groupon appoints ace financial duo to its board

Daily deals site needs folks who can do sums

The essential guide to IT transformation

Groupon has added two financial experts to its board in a bid to do its accounting right, although investors don't seem too cheered yet.

The daily deals site has had a string of embarrassing accounting issues, the latest of which was a restating of its fourth quarter results after what looked like someone not being able to do their sums properly. Groupon hadn't set aside the right amount of money for potential refunds to customers after it raised the prices on its coupons.

Breaking the news earlier this month, the site said it had a "material weakness" in its financial controls that it planned to address.

Yesterday, Groupon said that it had appointed Daniel Henry, the chief financial officer at American Express, to the board to replace resigning director Howard Schultz, the CEO of Starbucks.

Both Schultz and Kevin Efrusy of venture capital firm Accel Partners handed in their notice, although Groupon said the decisions were "not the result of any dispute or disagreement with the company or its board".

Efrusy is staying on as director for now, but won't stand for re-election on 9 June at the annual shareholders' meeting. Groupon is proposing Robert Bass, vice-chairman at Deloitte, to take his place.

Henry has also been appointed to the site's audit committee and Groupon wants Bass there too so they can use their "deep financial, accounting and operational experience" to try to steer the company's accounts back onto the straight and narrow.

The news does not seem to have had an inspirational effect on investors however, shares in the site dropped 10 per cent on the news, released shortly before the closing bell in New York. ®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.