Breaking news (Bloomberg) — LendingClub announced today that CFO Carrie Dolan is stepping down. The company has appointed Bradley Coleman to be interim CFO. It is therefore expected that Mrs. Dolan’s stepping down will take effect immediately.
In addition, Lending Club announces a few additional leadership changes:
- CEO Scott Sanborn has joined the company’s board.
- Tim Mayopoulos, Fannie Mae CEO, joins the board as well.
Scott Sanborn’s addition to the board is no surprise as it is expected for the company’s CEO to join the board. Mr. Mayopoulos joining the board is a very positive move for the company as he brings Fannie Mae’s credibility, experience and personal relations to the organization.
However, the sudden and immediate departure of the company’s CFO was unexpected. A normal course of action would have been the announcement that the CFO is departing and for a replacement transition and process to be put in place. Carrie Dolan has been a very close collaborator to Lending Club’s departed CEO, Renaud Laplanche.
“Public records show that Laplanche purchased a property in California, in November 2015 through an entity called the Brant Point Trust. He transferred 4.47 million LendingClub shares to the trust on Dec. 9, according to a regulatory filing in March. From Dec. 9 to Jan. 15, the stake pledged to the trust had lost almost half its value, falling to about $35 million. After Laplanche obtained the new financing, he offered to loan enough money to Chief Financial Officer Carrie Dolan so that she could refinance a personal loan backed by her shares, according to the May 2016 filing. She declined to comment through a company spokesman.” reports Bloomberg.
These leadership changes are coming only a few hours before Lending Club Q2 earnings announcement. We are looking forward to the details of the announcement. Such a sudden departure of the company’s CFO is most likely a sign that the coming earnings announcement will be worse than expected.