The Rise and Fall of Mark Okerstrom as Expedia CEO
Skift Take
Mark Okerstrom’s time as CEO of Expedia Group ended abruptly Wednesday after merely two years. Here’s a recap of Okerstrom’s tenure and why controlling investor Barry Diller felt Okerstrom failed to keep an eye on the ball.
Mark Okerstrom's journey as CEO of travel company Expedia Group has ended after merely two years in a sudden move.
"We don't think investors will be overly disappointed with a change in upper management," said Michael Olson, senior research analyst at Piper Jaffray in a note to investors on Wednesday. In fact, Expedia Group share prices were up about 6 percent, to $106 a share, in trading midday Wednesday.
On Wednesday, Barry Diller, chairman of Expedia Group and owner of a controlling interest in the conglomerate, said in a statement that Okerstrom's reorganization of the company's teams and repositioning of some of its brands had distracted the company's leaders from near-term growth goals.
Skift has been covering Okerstrom's reign intensively. Here's a recap of key points from his tenure, including what the CEO set out to do and why his reorganization may have stumbled.
The narrative, based mostly on reporting by Skift Executive Editor Dennis Schaal, may help cast light on the factors that led to today's news.
Why DID Okerstrom GET ELEVATED TO CEO?
In August 2017, after Expedia Group's then-CEO Dara Khosrowshahi announced he was quitting to take the top job at Uber, Skift evaluated the potential replacements and named Mark Okerstrom as the most likely candidate. Our call turned out to be right, though it wasn't too hard to make. Okerstrom was seen as a deals guy, and nobody likes doing deals more than his boss Barry Diller.
Okerstrom, 46, won the job for two key reasons. During his half-dozen years as the chief financial officer, he had shown a steady hand at overseeing consistent earnings growth. Okerstrom also led several well-regarded acquisitions, such as of home rental company HomeAway, since rebranded as Vrbo.
So it's tragic and ironic that Expedia Group's board of directors, led by crucial investor Diller, pushed out Okerstrom based on concerns about steady earning growth. For example, during the second quarter of this year, Okerstrom's team raised guidance for investors about the earnings the company would generate. Then management revised its forecast downward — creating "credibility issues" with investors, according to Olson at P
