Lending Club may not be involved in mortgage lending, but its newest board member certainly is.
The online lender, which is currently in a state of upheaval and under investigation after the sudden departure of its founder and CEO, Renaud Laplanche, in May, announced Monday that it is adding Timothy Mayopoulos, the CEO of Fannie Mae, to its board of directors.
Mayopoulos will serve as an independent director on Lending Club’s board, the company said Monday in an announcement made in conjunction with its second quarter earnings.
As Bloomberg reported Monday, Lending Club posted a loss of $81.4 million in the second quarter and also disclosed the departure of another executive, Chief Financial Officer Carrie Dolan, who resigned on Aug. 2, 2016 to “pursue a new opportunity.”
While Dolan is leaving, Mayopoulos is signing on to serve on the company’s board, along with current Lending Club CEO Scott Sanborn.
According to a release from Lending Club and an accompanying filing with the Securities and Exchange Commission, Mayopoulos has served as Fannie Mae’s CEO since 2012.
Prior to being named CEO, Mayopoulos also served as Fannie Mae’s general counsel, corporate secretary, and chief administrative officer.
Earlier in his career, Mayopoulos was general counsel of Bank of America, held senior management positions at Donaldson, Lufkin Jenrette, Credit Suisse First Boston and Deutsche Bank, and practiced law at Davis Polk Wardwell.
Mayopoulos said that he is “excited” to join Lending Club because of the company’s potential to change the finance industry.
“Lending Club has an opportunity to change banking for the better, and I am excited to be part of it,” Mayopoulos said.
“Through its use of innovative technology, Lending Club makes affordable credit more broadly accessible to individuals, families and small businesses,” Mayopoulos continued. “I look forward to contributing my skills to help the company achieve its full potential in meeting this important market need.”
Hans Morris, Lending Club’s chairman of the board, said the company is “very pleased” to welcome Mayopoulos to the board.
“His well-established industry experience, track record, integrity and deep financial and legal expertise will be invaluable to Lending Club in our continuing mission to transform the banking system,” Morris said of Mayopoulos.
As a director of Lending Club, Mayopoulos will be eligible for Lending Club’s board of director compensation, which, according to a company SEC filing, is:
Each non-employee member of our Board of Directors receives an annual cash retainer of $40,000. In addition, non-employee members of our Board of Directors who are not affiliated with our significant stockholders receive an equity award upon initial election to our Board of Directors having a value equal to at least $574,000 and a four-year vesting schedule. Each non-employee member of our Board of Directors receives an annual equity award having a value of $200,000 that vests quarterly over one-year.