Priceline CEO out over affair with employee

(AP Photo/Shizuo Kambayashi)

(CNNMoney)–Priceline CEO Darren Huston resigned on Thursday after an investigation found that he had an improper relationship with an employee.

The investigation determined Huston acted contrary to the online travel company’s code of conduct and “engaged in activities inconsistent” with that expected of executives. Priceline (PCLN, Tech30) didn’t say who the “personal” relationship was with other than to say it was someone who was not under Huston’s “direct” supervision.

As a result of Huston’s actions, Priceline said he will forfeit part of his unvested stock rewards and won’t receive any severance payments. Huston acknowledged and expressed regret over the relationship.

Huston is being replaced immediately by chairman Jeffery Boyd, who will serve as interim CEO and president of Priceline while the board launches a search for a permanent successor. Boyd is a 16-year Priceline veteran who successfully led the company between 2002 and 2013 as president and CEO.

Priceline also said Gillian Tans, the company’s current president and chief operating officer, is being tapped to lead Priceline’s business. Tans has been a leader at Priceline since 2002.

“We are confident the company is in strong hands while we conduct a search for a new CEO,” James Guyette, Priceline’s lead independent director, said in a statement. He added that he’s “satisfied” with the “thorough review” of the Huston situation.

Priceline stock fell 2% in premarket trading following the announcement.

WTNH NEWS8 provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review. Also, you can now block any inappropriate user by simple selecting the drop down menu on the right of any comment and selection "Block User" from there.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s