OneMain CEO Jay Levine leaves post at short notice

  • Push-out Score suggests push-out forces
  • After almost seven years in the position
  • Doug Shulman taking over
  • Levine will remain as Chairman at OneMain
  • Levine said 52 words

(exechange) — Evansville, Indiana, July 13, 2018 — Jay Levine, chief executive of OneMain, leaves the position. It is a change at short notice. As announced by OneMain Holdings, Inc. in a news release and in a regulatory filing published on Friday, July 13, 2018, Jay N. Levine leaves his post as Chief Executive Officer at the personal lending firm after almost seven years in the role, effective no later than September 10, 2018.

Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 9.5 years, according to data compiled by exechange.

Levine’s duties will be taken over by Douglas H. (Doug) Shulman, most recently Senior Executive Vice President and Global Head of Client Service Delivery of BNY Mellon.

The fact that Levine’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.

In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.

No reason given

In the announcement, OneMain did not explicitly explain the reason for Levine’s imminent move, leaving room for speculation.

Levine will remain as Chairman at OneMain

“Shulman succeeds Jay Levine who will remain Chairman of the Board,” OneMain said.

“Step down”

OneMain said: “On July 13, 2018, OneMain Holdings, Inc. … announced that the Company’s Board of Directors … has appointed Douglas H. Shulman as the Company’s President and Chief Executive Officer, effective on Mr. Shulman’s first date of employment with the Company, which will be no later than September 10, 2018 (the date on which such employment commences, the “Start Date”). In connection with Mr. Shulman’s appointment, Jay N. Levine announced that he will step down as the Company’s President and Chief Executive Officer effective as of the Start Date and will remain with the Company as the Chairman of the Board.  Effective as of the Start Date, it is expected that Mr. Shulman will also be appointed to the Board.”

In the position of CEO since 2011

Levine has served as President and CEO and as a director of the Company since October 1, 2011.

Levine served as President and Chief Executive Officer and as a director of Capmark Financial Group Inc. (“Capmark”) (a commercial real estate finance company) from December 2008 until February 2011.

On October 25, 2009, Capmark and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Capmark and certain of its subsidiaries emerged from bankruptcy on September 30, 2011.

From 2000 to 2008, Levine served as President, Chief Executive Officer (Co-Chief Executive Officer from March 2000 until January 2007), and a member of the board of directors of Royal Bank of Scotland Global Banking & Markets, North America (a banking and financial services company), and Chief Executive Officer of its predecessor entity, RBS Greenwich Capital (a financial services company), with responsibility for the company’s institutional business in the United States.

Previously, Levine was co-head of the Mortgage and Asset Backed Departments at RBS Greenwich Capital.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Jay Levine’s imminent move.

The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.

Read the full story in the exechange report 29.2018 ($).