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Priceline.com CEO ousted
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May 7, 2001: 6:09 p.m. ET
Board rejects Schulman, installs former CEO Braddock; reaffirms 2Q guidance
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NEW YORK (CNNfn) - Priceline.com Inc.'s board of directors ousted Chief Executive Officer Daniel Schulman on Monday and replaced him with Chairman and former CEO Richard Braddock, saying the move was in the "best interests of the company."
The troubled online discount travel service also reaffirmed that it would meet Wall Street's second quarter profit and revenue estimates. Chief Operating Officer Jeffery Boyd was also named president, a title which Schulman also held.
The Norwalk, Conn.-based company said in a statement that it decided the reshuffling was "in the best interest of the company given the significant progress Priceline has made in its turnaround plan and drive to profitability."
Braddock, who previously served as CEO from July 1998 to last May, will remain the company's chairman.
"Rick has been instrumental in building Priceline.com and has helped define and guide the company's strategic direction through its turnaround efforts," said N.J. Nicholas, a company director. "He spearheaded the recent transactions which strengthened the company's balance sheet, including the restructuring of the company's preferred stock and the equity investment by Hutchison-Whampoa."
The news comes a week after Priceline.com posted a narrower-than-expected first quarter loss and said it expected to post a profit in the second quarter.
That's a vast improvement over previous quarters in which the company struggled with customer service problems along with the volatility of the Nasdaq and technology downturn.
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In addition to airline tickets and rental cars, Priceline.com offers items such as home financing, hotel rooms, new cars, and long-distance telephone service. But the company generates the bulk of its revenue from travel-related products, which it said represented more than 90 percent of total sales in the first quarter.
Priceline.com had ventured into online grocery and gasoline sales as well, but backed out of those businesses last year after they proved a drag on earnings. 
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