Social shopping platform Groupon is bleeding money and now the company is adding nearly $1 million to its losses. The company on Tuesday filed an 8-K form with the SEC in which it details compensation levels for co-CEO replacements Eric Lefkofsky and Ted Leonsis. Both men took over daily operations for Groupon upon the departure of founder and CEO Andrew Mason.
Leonsis will receive $210,000 annually and Lefkofsky will receive $200,000. Should a permanent CEO be named before the full year is up on their contracts both men will only be paid for work completed prior to the hiring of Groupon’s new CEO.
The 8-K form also revealed that high ranking executive Jeffrey Holden will earn a combined $500,000 in bonuses for 2014 and 2015. The filing does not reveal Holden’s salary but does note that his $500,000 in bonuses are guaranteed.
Jeffrey Holden is the SVP of product management for Groupon. Under his leadership Groupon has been attempting to expand its local commerce services, specifically via mobile technologies.
Holden has long been seen as a key component to future successes at Groupon. Holden formerly served as a member of the executive team at Amazon where he oversaw consumer websites. Holden joined Groupon in April 2011 after the social shopping destination purchased his company Pelago.
While $410,000 guaranteed might sound like a lot of money to pay two workers to run a company that is losing money, their combined salaries are relatively cheap compared to Mason’s take home pay.
Lefkofsky is not hurting for cash, having sold off $382 million in Groupon shares pre-IPO.
Groupon’s last quarterly earnings statement posted revenue of $638.8 million with an operating loss of $12.9 million and a loss per share of 12 cents.
Mason bailed from the company’s top position following several consecutive quarters that failed to meet analyst expectations.