UPDATE: A recent SEC filing (Form 8-K) reveals additional context around the CEO transition, suggesting the departure may have been less voluntary than initially presented. More below.

Started by Stanford professors, Coursera’s leadership journey reflects its evolution from an academic experiment to a public ed-tech company. The company began with computer science professors Andrew Ng and Daphne Koller as co-CEOs, transitioned to former Yale president Rick Levin, then to a finance executive Jeff Maggioncalda, and now will be led by Amazon veteran Greg Hart, whose last role was at a real estate technology company.

Just before its Q4 2024 results, Coursera announced that current CEO Jeff Maggioncalda will retire from his position and the Board, to be replaced by Amazon veteran Greg Hart.

Maggioncalda joined Coursera as CEO in June 2017, succeeding former Yale President Rick Levin. During his tenure, Coursera’s revenues grew from $60 million to almost $700 million annually, and registered learners expanded from 26 million to 168 million, with a significant boost during the pandemic when the platform crossed 100 million users.

Under his leadership, Coursera successfully completed its initial public offering and secured a crucial partnership with Google that now generates $100 million annually. Maggioncalda shifted Coursera’s strategic focus toward industry-led certifications, expanding beyond the company’s original university-centric approach.

Currently, Coursera lists 85+ certificates from 25 different industry partners. It would not be surprising if industry partner content became Coursera’s largest source of consumer revenue, surpassing university credentials.

Maggioncalda was also a highly visible CEO, frequently representing Coursera in the media and at both academic and industry events. A quick search on YouTube reveals dozens of his media interviews and conference appearances. I have personally shared a panel with him and had the opportunity to interview him at a conference.

Based on my limited exposure, I could see how effectively he interacted with university leaders despite his finance background, successfully filling the leadership gap that might have existed when he took over from Rick Levin.

So I was surprised to hear the news that he “retired”. But looking at the numbers, the story becomes clearer.

Coursera’s three revenue streams – consumer, enterprise, and degrees – haven’t grown fast enough to satisfy Wall Street. Last year, Coursera repeatedly lowered its earnings predictions for 2024. Ultimately, Coursera’s 2024 earnings grew by only 9%, reaching $695 million, far below the 15% growth the company had predicted at the start of 2024.

The stock market’s response has been brutal. Coursera’s stock price has dropped by about 50% in 2024. Compared to its IPO, the stock is down roughly 85%. The company is now worth about $1.2 billion – much lower than the $2.5 billion it was valued at before going public, and nowhere near the $5.86 billion it was worth on its first day of trading.

In response, Coursera implemented leadership changes and organizational restructuring, along with layoffs. Now, they’re hoping Greg Hart, who had a long career at Amazon, can turn things around. At Amazon, Hart was an advisor to Jeff Bezos and led the creation of the popular Alexa and Echo devices. He also ran Amazon’s Prime Video service.

Prior to joining Coursera, Hart served as Chief Operating Officer of Compass, a real estate technology company. He left Compass in December 2023 when his role was eliminated.

Though not officially starting until February 3rd, Hart appeared on the earnings call and delivered some generic CEO-like comments. The one concrete thing he mentioned was that he expects Coursera for Campus to drive the most growth in the Enterprise business in 2025, followed by Coursera for Business, with Coursera for Government contributing the least.

Meanwhile, Coursera’s investor presentation revealed plans to reduce investment in their Degrees segment while shifting focus to opportunities like Coursera for Campus.

The details of Maggioncalda’s exit package, disclosed in a January 29 SEC filing, tell a different story about his departure. He will receive 12 months of salary, his full 2025 target bonus, and his 2024 annual bonus – terms typically associated with involuntary departures rather than retirements.

To maintain stability during this transition, Coursera has also secured its CFO Kenneth Hahn with enhanced severance benefits, suggesting the Board is implementing a broader leadership strategy shift.

UPDATE – The “Retirement” That Wasn’t

A recently filed SEC Form 8-K confirms that Jeff Maggioncalda’s departure wasn’t entirely voluntary. While publicly framed as a retirement, the terms of his severance package suggest otherwise. According to the filing, Maggioncalda is set to receive a lump sum cash payment equivalent to 12 months of his base salary, his full target bonus for fiscal year 2025, and his annual bonus for 2024 as if he had remained employed through the payout date​

Additionally, he will provide advisory services through mid-2025, allowing him to continue vesting in certain equity awards. He will also receive six months of paid COBRA health insurance​

Notably, the structure of his severance mirrors the termination protections offered to Greg Hart, the new CEO. This strongly indicates that Maggioncalda’s exit was not entirely on his own terms but rather a decision driven by Coursera’s Board.