ComScore’s accounting woes continued to mount Thursday after the company said it would need more time to file its June quarterly financial statements and revamped its management team, naming CEO Serge Matta executive vice chairman while co-founder Gian Fulgoni takes over the CEO spot. In addition, executive vice chairman Bill Livek, who joined ComScore after it merged with his measurement firm Rentrak last year, will take over responsibilities for strategic and day-to-day operations.
ComScore shares were down as much as 6% ($1.62) to $25.58 each in early trading Thursday. The stock has rebounded slightly, priced at $26.01 per share, down $1.19 each or 4.4% in afternoon trading.
In a Securities and Exchange Commission filing, ComScore said its board has identified some possible problems around the reporting on non-monetary revenue – primarily barter transactions – that could have helped artificially boost compensation for Matta and other executives. The board said it had not determined if those transactions were incorrectly recorded.
ComScore launched an independent investigation into the accounting matters earlier this year. In the SEC filing the company said the probe was “substantially complete,” but that its Audit Committee has “identified certain areas of potential concern, including with respect to certain accounting and disclosure practices and controls that the Company, with input from its consultants and counsel, is further analyzing.”
Fulgoni had previously served as comScore’s executive chairman from 1999 to 2014 and has been a board member since 1999. From 1981 to 1998 he was CEO of Information Resources, Inc., a global supplier of retail point-of-sale scanner information to the consumer packaged goods industry.
“I am honored to take on the role as CEO of comScore at this important juncture in our company’s history,” Fulgoni said in a statement. “As comScore moves forward in pursuit of compelling TV and cross-platform measurement opportunities along with the other attractive digital measurement markets that exist globally, I am confident in the foundation we have built with our talented employees, world-class technology and data assets, and industry-leading solutions. We will lean into the future with the bias for action, passion and spirit of innovation that have always been the hallmarks of comScore.”
In addition, comScore named former Rentrak chief financial officer David Chermerow as CFO, replacing Melvin Wesley III. In addition, board member and former Procter & Gamble SVP Joan Lewis has been named non-executive chair of comScore.
Chemerow, Livek and Matta will report directly to Fulgoni.