Shailesh Mehta Remains CEO Pending Appointment of Successor
SAN FRANCISCO, Oct. 18 /PRNewswire/ --
Providian Financial Corporation (NYSE: PVN) announced today that, at the
suggestion of CEO Shailesh J. Mehta, its Board has initiated a number of steps
to improve the Company's risk profile and to address the earnings challenges
facing the Company. These steps include the appointment of J. David Grissom,
a current member of Providian's Board, as Chairman, succeeding
Shailesh J. Mehta in that role. The Board also announced the initiation of a
search for a new CEO. Mr. Mehta will continue to serve as CEO and President
of Providian pending the selection of a successor.
"Management and the Board recognize that these steps are necessary to
address the challenges currently facing the Company," said Mehta. "Providian
remains a strong and vibrant Company, and management and the Board stand
united in our commitment to restore investor confidence and return the Company
to its recent successful growth performance."
"These steps have been taken at my initiative in direct dialogue with the
Board," continued Mehta. "I have a significant personal and economic stake in
Providian and am committed to working with the Board to restore investor
confidence and rebuild shareholder value. I fully support the Board's efforts
to chart the best strategic course for our future."
"Providian's Board of Directors is committed to enhancing shareholder
value," added Grissom. "The Board is actively involved in this process and
will remain actively involved as we work through the challenges we presently
face."
Grissom, a member of the Providian Board since 1997 and its predecessor,
Capital Holding Corporation, since 1979, is chairman of Mayfair Capital, Inc.,
a private investment firm, and the Glenview Trust Company, a private trust
company. Both are headquartered in Louisville, Kentucky. Grissom served as
chairman and CEO of Citizens Fidelity Bank and Trust Company from 1978 until
1989 and was vice chairman of PNC Financial Corp. from 1987 until 1989.
About Providian Financial
Winner of the 2001 Rochester Institute of Technology/USA Today Quality Cup
for excellence in customer service, San Francisco-based Providian Financial is
a leading provider of lending and deposit products to customers throughout the
U.S., and offers credit cards and deposit products in the UK and in Argentina.
Providian Financial has been named one of America's Most Admired Companies in
a survey by Fortune magazine, one of the nation's top financial institutions
by U.S. Banker magazine, and one of the most technologically innovative
companies in the U.S. by InformationWeek magazine. The Company has more than
$38 billion in assets under management and more than 18 million customer
accounts.
SOURCE Providian Financial Corporation
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Related links:
http://www.providian.com
CONTACT:
Alan Elias of Providian Corporate
Communications, +1-415-278-4189
NOTE TO EDITORS: Providian's Board made this announcement in
conjunction with the Company's regularly scheduled release of
financial results for the quarter ended September 30, 2001.
Copies of that release, together with biographical materials on
J. David Grissom and Shailesh Mehta are available by contacting
Alan Elias in Providian Corporate Communications at 415-278-4189.
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