New CEO for Santander Consumer USA, as Co-Founder Dundon Departs

Santander Consumer USA appointed Jason A. Kulas as chief executive effective immediately, succeeding Tom Dundon, one of the company’s founders who was chairman and CEO.

“After successfully growing the SCUSA business over the last 20 years, including nine years as CEO, Mr. Dundon has decided to pursue new opportunities,” the company said today in a written statement.

The executive change was unexpected.

Dundon is to continue as a member of the board and senior adviser to the company, but the company said it would also exercise a previously negotiated agreement to buy out all of Dundon’s shares in the company, representing about 9.7% of SCUSA’s common stock, worth an estimated $1 billion.

SCUSA 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. The lender’s core business since its founding is subprime auto loans. Kulas said he has no plans to change the company’s strategy.

In a hastily convened conference call today, Kulas said repeatedly that Dundon’s departure was “amicably agreed upon and unrelated to the company’s performance and regulatory standing.” Kulas was SCUSA president.

Securities analysts on the call noted the unusual nature of the moves, with one analyst describing it as “essentially, adding someone to the board who’s just sold all his stock.”

Kulas’s response: “He wanted to be on the board and we wanted him to be on the board.”

Kulas joined the company in 2007 as CFO after covering SCUSA, since its founding, as an investment banker at JPMorgan Chase & Co.. As CFO, he oversaw the company’s treasury, accounting, financial planning, capital markets and corporate strategy divisions. He became president in 2013 and, since SCUSA’s IPO in 2014, has overseen the company’s corporate development, asset management, investor relations and various regulatory functions.

Jason Grubb , chief operating officer-originations, becomes president. The SCUSA board also appointed Lead Outside Director Stephen Ferriss as interim chairman, until the SCUSA’s July 15 annual meeting.

Dundon did not participate in today’s conference call.