Expedia Group’s CEO Mark Okerstrom and CFO Alan Pickerill have resigned at the request of the company’s board of directors. Okerstrom also stepped down as a member of the board.
Each of the executives will be allowed severance and equity award acceleration in accordance with their terms. Expedia said Okerstrom did not have any disagreement with the company on any matter relating to its operations, policies, or practices.
Okerstrom took over as CEO in 2017 following Dara Khosrowshahi’s move to Uber, having previously been CFO.
The news comes after Expedia revealed net income across the group dropped 22 per cent year-on-year in the third quarter of 2019.
Barry Diller, chairman of the board and senior executive, and Peter M Kern, vice-chairman of the board, will jointly preside over the company’s day-to-day operations. Meanwhile, Eric Hart, chief strategy officer, will serve as acting CFO and Ariane Gorin, who most recently served as president of Expedia Partner Solutions, is being promoted to president, Expedia Business Services.
Diller commented: “Ultimately, senior management and the board disagreed on strategy. Earlier this year, Expedia embarked on an ambitious reorganisation plan with the goal of bringing our brands and technology together in a more efficient way. This reorganisation, 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. The board disagreed with that outlook, as well as the departing leadership’s vision for growth, strongly believing the company can accelerate growth in 2020. That divergence necessitated a change in management. Mark Okerstrom is a talented executive and his 13 years of service to Expedia has greatly benefited the enterprise. The board and I wish him the best for the future, as we do for Alan Pickerill.”
Egencia, Expedia’s business travel division, was contacted for comment. A spokesperson said they were not able to comment beyond what had been shared in the SEC filing.