Thomas Dundon suddenly quitting as chairman and CEO of Santander Consumer USA last week set in motion a series of personnel changes and promotions at the auto lender, starting with making President and CFO Jason A. Kulas the new CEO.
The company insisted the move was, “in line with SCUSA’s Board-approved succession plan,” but in a hastily convened conference call on July 2, analysts questioned the timing of the announcement and the unusual way in which the company bought back all of Dundon’s shares but kept him on the company board.
Dundon is expected to stay on the board and to serve as a “senior adviser.” However, the company also said it would exercise its previously negotiated agreement to buy out all of Dundon’s shares in the company. That represents about 9.7% of SCUSA’s common stock, with an estimated worth of more than $900 million.
SCUSA posted the announcement on PRNewswire at 4:15 p.m. Eastern Daylight Time. In the same announcement, the company also convened a conference call just one hour later – just as the long Independence Day weekend began.
Dundon, a co-founder of the company, “decided to pursue new opportunities,” the company said. Kulas said in the conference call Dundon’s move was “amicably agreed upon and unrelated to the company’s performance and regulatory standing.”
SCUSA, based in Dallas, provides private-label financing under the Chrysler Capital name for Chrysler, Dodge, Jeep, Ram and Fiat dealers in the U.S. Chrysler Capital was created in May 2013.
Jason Grubb, chief operating officer, originations, succeeds Kulas as president. Jennifer Popp, deputy chief financial officer, was appointed interim CFO to succeed Kulas in that role, until a permanent CFO is appointed.
The SCUSA board also appointed Lead Outside Director Stephen Ferriss as interim chairman, until SCUSA’s July 15 annual meeting.
