Green Dot, Bank Behind Walmart and Apple Debit Cards, CEO of Fires

(Bloomberg) – Green Dot Corp., which operates the bank behind debit cards offered by Walmart Inc. and Apple Inc., has fired its CEO.

CEO Dan Henry will be replaced by George Gresham, the company’s chief financial and operating officer, according to a statement on Monday. Henry also resigned from the company’s board.

“Green Dot and its transformation into a modern financial services company and technology platform present unique and complex challenges requiring deep operational expertise and management, and the Board of Directors has determined that the experience, knowledge and George’s approach are very well suited to the position of CEO and its related responsibilities,” President Bill Jacobs said in a note to staff. “We would like to thank Dan for his contributions and service, and for the foundations that Dan asked, throughout a critical transition period for the business.”

Green Dot shares fell 10% before rising to $19.57 at 11:08 a.m. in New York, making the company the third-worst performer on the KBW Nasdaq financial technology index of 49 companies. The stock has fallen 46% this year, more than the index’s 35% decline.

The Austin, Texas-based company operates the bank behind Walmart’s Apple Cash and MoneyCard. Founded in 1999, the company has more than 30 million accounts and its products are distributed in 90,000 outlets in the United States.

In August, Green Dot warned it was seeing an increase in customer turnover after three partners indicated they would not be renewing their contracts with the company. The company also said it was in the midst of a dispute with Uber Technologies Inc. over the ride-sharing company’s obligations under an agreement between the two companies, which offers drivers a debit card to receive their earnings in real time.

The company said Monday it now expects third-quarter earnings to be “at or near the upper end of the guidance range” it offered in August, when it said earnings adjusted should be between 34 and 38 cents per share.

Green Dot is postponing an investor day it had planned for next month, Jacobs said in the memo.

“While the news of Dan Henry’s dismissal is not positive and clearly a surprise, it mostly appears to be a board-chosen direction rather than a cause-related direction,” said Steven Kwok, analyst at Keefe, Bruyette. & Woods, in a statement. note to customers. “It would appear that the board felt it was time for a change in execution strategy and Mr. Gresham’s extensive experience in the industry should help him in the role of CEO.”

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