The venerable consumer fintech Green Dot, which has endured a tumbling stock price in recent years, announced the departure of its CEO and a plan to explore strategic alternatives.
George Gresham was the second CEO that Green Dot hired after founder Steve Streit
Gresham stopped serving as Green Dot's president and CEO on Friday, the company said Monday in a press release. Board Chairperson William Jacobs will fill the CEO job on an interim basis, while Chief Revenue Officer Chris Ruppel will serve as interim president, according to the company.
Green Dot has engaged Citigroup to explore potential strategic alternatives, the company said. It did not elaborate on either the reasons for Gresham's departure or its timeline for considering strategic alternatives.
"The Board of Directors and management team are committed to acting in the best interests of Green Dot, its stockholders and its shareholders," the company said in the press release. "No assurances can be given as to the outcome or timing of the strategic review process, and Green Dot does not intend to make any further public comment regarding the process until it determines that disclosure is appropriate."
Amid a broader sell-off in the stock market on Monday morning, shares in Green Dot were down by about 2.5% to $7.26.
Green Dot's stock price rose above $90 in September 2018, and its shares traded as high as $54 in the fall of 2021. The 26-year-old company was a pioneer in the prepaid card business, and it rose on the back of its relationship with Walmart.
In more recent years, Green Dot
Last year, a former Green Dot employee sued the company, alleging that it concealed information about its declining prepaid card business from shareholders.
The company lets business owners comingle personal and business finances in one app.
Green Dot's problems intensified last July, when the Federal Reserve
Gresham first became affiliated with Green Dot in 2016, when he
Streit left the company at the end of 2019. About three months later, Henry joined Green Dot as president and CEO. Henry was fired in October 2022, at which point Gresham, who had been serving as chief financial officer and chief operating officer, took over.
Jacobs, who has been chairperson of Green Dot's board since June 2016, served as interim CEO once before. He filled the same role in early 2020, during the period between Streit's departure and Henry's arrival.
Ruppel, the company's new interim president, joined Green Dot in 2017 and has served in a number of roles, including as head of the company's direct-to-consumer business lines, according to his LinkedIn profile. He has been chief revenue officer since November 2022.
