Longtime Ally Financial CEO Jeffrey Brown is leaving the auto lender by early next year, the company said Wednesday.
Brown, who's been Ally's CEO for nearly nine years, joined the company 14 years ago and
"What began in 2009 as the financial reengineering of a company ultimately became a bank that truly matters in the financial industry, and now is the right time for me to transition," Brown said in a press release announcing his departure.
The company today is "a more strategically, operationally and financially sound organization," Brown said.
The announcement was a surprise, Jefferies analyst John Hecht wrote in a note to clients. He noted "how big of a voice" Brown has been in Ally's trajectory, as well as the fact that the company recently got a new chief financial officer.
Ally's stock price fell more than 3% after the news, which came a week before the company is scheduled to report its quarterly earnings.
In its announcement, Ally said the search for Brown's successor has kicked off and that it has hired a global executive search firm. Franklin Hobbs, the chair of Ally's board, called Brown an "exceptional leader" who's steered the company "with a skilled, steady hand."
Brown is set to stay with Ally until Jan. 31 or an "earlier date determined by the Chair of the Board to help ensure a smooth leadership transition," the company said.
Brown will become president of Hendrick Automotive Group, a longtime Ally customer. Hendrick, which has 131 franchises across 13 states, is the largest privately held dealership group in the country, Ally said.
"I especially look forward to building on Hendrick's relationship with Ally as a customer and seeing both businesses continue to grow and succeed," Brown said in the press release.
American Banker named
