SAN FRANCISCO, Nov. 26 /PRNewswire/ -- The board of directors of Providian
Financial Corporation (NYSE: PVN) announced today that Joseph Saunders has
been selected as president and chief executive officer. He succeeds
Shailesh J. Mehta, who announced last month that he would step down pending
the appointment of a new chief executive officer. Mr. Saunders has also been
elected to the Providian board of directors.
(Photo: http://www.newscom.com/cgi-bin/prnh/20011126/SFM055 )
Mr. Saunders, 56, brings to the position more than 25 years of senior
management experience in the retail financial services industry. Most
recently, he was Chairman and CEO of Fleet Credit Card LLC. Prior to that, he
served as head of the card operations of Household International Inc.
Mr. Saunders began his career in financial services in 1968 with Continental
Illinois National Bank, where he rose to the post of Vice President of Credit
Cards. Mr. Saunders previously served as Chairman of the Board of Mastercard
International.
"Providian is a franchise with great underlying value. I am committed to
working, together with our financial advisors, to realize that value and
rebuild customer, investor and public confidence," Mr. Saunders said. "The
credit card business presents excellent opportunities and Providian has the
people, the technology and the products to realize that potential. While a
great deal of hard work lies ahead, we will get there by rebuilding the
confidence of the markets and of our regulatory and other important
constituencies and by delivering great service and attractively priced
products to our customers.
"I plan to continue the strong recent progress in developing near- and
longer-term strategies to address the current challenges Providian faces. In
the days and weeks ahead, we will be working to refine those strategies and to
develop more detailed growth management, capital and liquidity initiatives to
supplement the initiatives that have already been announced. I look forward to
working with my new colleagues at Providian to shape a new Providian
consistent with the interests of all stakeholders."
J. David Grissom, who will continue as Chairman of Providian, said, "We
are delighted that Mr. Saunders will be joining Providian. He is a proven
leader with extraordinarily broad experience in consumer financial services.
Mr. Saunders has an exceptional breadth of experience in managing complex
credit card operations and has the precise skill set that Providian needs at
this time. We are confident that his skills will bring the focus, discipline
and management experience that this company needs to meet the near-term
challenges that lie ahead, and to help Providian realize its full potential.
"We also wish to express our appreciation to Shailesh J. Mehta for his
many years of service to Providian and for his dedication to the Company in
these recent difficult times."
Mr. Saunders will commence work immediately. His appointment as CEO and
President remains subject to regulatory review.
Previously, Providian announced a five-point strategic action plan
designed to focus the business on those market segments with the highest
expected risk-adjusted returns, address under-performing areas, reduce
expenses, and manage its capital, reserves, and liquidity. Providian
previously said it had received a commitment from Salomon Smith Barney and
Goldman, Sachs & Co. to securitize at least $900 million in credit card
receivables and that it is working with its investment bankers to develop a
structure for a possible sale of a portfolio of approximately $3 billion of
higher-risk credit card receivables. The Company also announced that it will
close its facility in Henderson, Nevada.
About Mr. Saunders
Since 1997, Joseph Saunders has been Chairman and Chief Executive Officer
of Fleet Credit Card Services at FleetBoston Financial Corporation. Prior to
that, Mr. Saunders spent 12 years at Household Finance based in Illinois where
he held three executive positions rising to head of the Private Label Credit
Card Business and Canadian Business. Prior to joining Household Credit
Services in 1985, Saunders spent one year at Bank of America as vice president
in credit card operations.
About Providian
San Francisco-based Providian Financial is a leading provider of credit
cards and deposit products to customers throughout the U.S., and also offers
credit cards and deposit products in the UK and in Argentina. The company has
more than $32 billion in managed receivables and more than 18 million customer
accounts.
SOURCE Providian Financial Corporation
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Related links:
http://www.providian.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20011126/SFM055 AP
PhotoExpress Network: ENTER PRN# HERE PRN Photo Desk,
+1-888-776-6555 or +1-212-782-2840
CONTACT:
media, Alan Elias, +1-415-278-4189, or
investors, Nancy Murphy, +1-415-278-4483, both of Providian
Financial Corporation
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