- After about nine years in the position
- Praise and thanks for Remondi
- Dave Yowan taking over
(exechange) — Wilmington, Delaware, May 15, 2023 — Jack Remondi, chief executive of Navient, leaves his position. As announced by Navient Corp. in a news release on Monday, May 15, 2023, John F. (Jack) Remondi leaves his post as chief executive officer at the corporation that services private student loans, after about nine years in the role, effective immediately.
Jack Remondi’s duties as CEO will be taken over by David L. (Dave) Yowan, a former corporate treasurer at American Express.
Already a director
Yowan has already been a member of the board of directors of Navient. Generally speaking, most director-turned-CEO appointments occur following a sudden resignation of the outgoing CEO and signal a lack of preparedness on the company’s part to groom internal talent. Directors-turned-executives represent a blend of outsider and insider.
They don’t have the constraints of a pure insider when it comes to leading painful changes or making unpopular decisions, and they have more company knowledge than a pure outsider.
Having been a director, Yowan understands the expectations and dynamics of the board and has knowledge of Navient’s organization, risk-management practices and strategy.
“Proven track record in transformational change”
Navient did not give an explicit reason for Jack Remondi’s departure from the CEO post. Linda Mills, chair of the board, stated: “With more than 40 years of finance industry experience, and after six years on the Navient board, Dave Yowan brings significant financial and strategic expertise and strong leadership skills to his new role. We are confident that his deep understanding of Navient’s business operations, culture, challenges and opportunities, as well as a proven track record in transformational change, will help enable us to deliver exceptional results for our customers, investors and other stakeholders.”
Precise information regarding Jack Remondi’s future plans was not immediately available.
Navient said: “David L. Yowan, a member of the Navient board of directors and formerly corporate treasurer for American Express, has been appointed president and CEO of the company. He succeeds Jack Remondi in this role, effective May 15.”
Share price decline since May 2021
The announcement follows a decline in Navient Corp.’s share price of 12% since May 2021.
In the position of CEO since 2014
Jack Remondi became CEO of the Company in 2014.
Remondi, whose director term expires as of the 2023 Annual Meeting of Shareholders on May 25, will not be renominated to the board at the Annual Meeting.
Remondi has been the Company’s President and Chief Executive Officer since April 2014.
He was SLM Corporation’s President and Chief Executive Officer from May 2013 to April 2014, President and Chief Operating Officer from January 2011 to May 2013 and its Vice Chairman and Chief Financial Officer from January 2008 to January 2011.
Remondi has a nearly 30-year history in the student loan and business services industry with Navient and its predecessors, in a variety of leadership roles, including as chief executive officer, chief operating officer and chief financial officer.
No statement by Jack Remondi
In the news release announcing his departure as CEO of Navient Corp., Jack Remondi received praise and thanks.
The announcement of his departure as CEO does not include a statement by Jack Remondi.
40% of CEOs are forced out or fired
When CEO departures are announced, exechange determines the Push-out Score on a scale of 0 to 10 to assess how likely it is that the chief executive was pushed out or felt pressure to leave the position, with 0 being most likely a voluntary move and 10 being most likely a forced exit. Anything over a 5 indicates that there are valid reasons to believe an executive may have been pushed out.
Of the 316 CEO departures in the Russell 3000 Index evaluated over the past 12 months (May 15, 2022, to May 14, 2023), the average Push-out Score was 6.1, according to exechange data. References to conduct issues, disagreements and irregularities lead to the highest Push-out Scores. When performance issues, pursuit of other opportunities or time with family were cited as departure reasons, the average Push-out Scores were also significantly elevated.
Around 40% of the CEO departure events from the past 12 months received Push-out Scores of 8 or higher.
In other words, in the past 12 months, two in five departing CEOs were forced out or fired.
Push-out Score for Jack Remondi’s move determined
The Push-out Score regarding Jack Remondi’s move is explained point by point in the exechange report.
exechange reached out to Navient and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 21.2023 ($).