- Push-out Score suggests push-out forces
- After less than two years on the job
- Juan Carlos Alvarez taking over
(exechange) — Dallas, Texas, October 02, 2017 — Izzy Dawood, finance chief of Santander Consumer, leaves. It is an abrupt change. As announced by Santander Consumer USA Holdings Inc. in a news release and in a regulatory filing published on Monday, October 02, 2017, Ismail (Izzy) Dawood has already left the post as Chief Financial Officer at the subprime car-loans company after less than two years on the job, effective September 29, 2017.
No company wants a CFO to flame out in the first years.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, only 22 percent of the CFOs who departed over the past twelve months left within two years, and 37 percent left within three years. Overall, the average tenure of those who left was 5.6 years, according to data compiled by exechange.
Dawood’s move comes less than 40 days after Scott Powell took over as CEO of Santander Consumer USA Holdings Inc.
Furthermore, Dawood’s move comes 15 months after William Rainer took over as chairman of Santander Consumer USA Holdings Inc.
Dawood’s duties are taken over by Juan Carlos Alvarez, most recently Corporate Treasurer at Santander Holdings USA, Inc.
Dawood’s move is part of a management shake-up also involving the positions of Head of Operations; and President, Chrysler Capital and Auto Relationships.
“To pursue other opportunities”
The sudden management change is explained as follows. Santander Consumer said: “Dawood, who has been with SC since December 2015, is leaving to pursue other opportunities.”
The phrase “to pursue other opportunities” opens the door to speculation.
Precise information about the future plans of Dawood was not immediately available.
Generally speaking, it is often a wake-up call for investors when a CFO leaves the post abruptly and without comprehensible reasons being given.
Santander Consumer said: “[T]he Company announced the departure of Ismail Dawood from the Company as Chief Financial Officer as of the close of business on September 29, 2017.”
Share price decline
The change follows a decline in the share price of Santander Consumer USA Holdings Inc. since June 2015.
Chaired by William Rainer
Santander Consumer USA Holdings Inc. is chaired by William Rainer.
Rainer was elected to serve on the Company’s Board of Directors in July 2015 and appointed the Chair of the Board and the Chair of the Company’s Executive Committee in July 2016.
CEO: Scott Powell
Scott Powell serves as CEO of Santander Consumer USA Holdings Inc. Powell has been Chief Executive Officer and President of Santander Consumer USA Holdings Inc. since August 28, 2017.
On the job as CFO since 2015
Dawood joined the Company as Chief Financial Officer on December 16, 2015.
Prior to joining the Company, Dawood served as Executive Vice President and Chief Financial Officer of the Investment Services division of The Bank of New York Mellon Corporation (“BNY Mellon”) since April 2013, as Executive Vice President and Director of Investor Relations and Financial Planning and Analysis of BNY Mellon from June 2009 to March 2013 and as Senior Vice President and Global Head of Corporate Development and Strategy of BNY Mellon from November 2006 to May 2009.
He also served in various senior roles at Wachovia Corporation, where he was employed from 1994 to 2006, including Managing Director of Structured Treasury Activities and Managing Director of Corporate Development.
Dawood holds a master’s degree in business administration from the Wharton School of Business and a bachelor’s degree in finance from St. John’s University, Jamaica (Queens), New York and is a Chartered Financial Analyst (CFA) charterholder.
At the time of Dawood’s appointment as Chief Financial Officer at Santander Consumer, Jason Kulas, then Chief Executive Officer, had said: “We are extremely pleased to have Izzy Dawood join the SC team, where he will make a tremendous impact. Izzy’s broad and deep experience in financial services, investment banking, capital markets, strategic planning and leading a publicly traded company will be critically important as SC continues to focus on driving shareholder value and delivering superior service to customers.”
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Izzy Dawood’s sudden move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the management change.
Read the full story in the exechange report 41.2017 ($).