LendingClub (NYSE:LC) has filed a new form with the SEC (DEF 14A) in advance of the annual shareholders meeting which is scheduled to take place on June 6, 2017. The addition to the Annual Meeting Proxy Statement, a standard filing, includes a presentation on the company asking shareholders to support Director nominees, executive compensation and ratification of the auditor.
Three Directors are up for re-election to the LendingClub board including CEO Scott Sanborn, Larry Summers and Simon Williams. Summers joined the LendingClub Board in December 2012 and is perhaps the highest profile member having served as Secretary of the Treasury from 2009 to 2011 – among many other accomplishments. Summers was chosen to serve on the LendingClub Board because of his “extensive economic, financial and business experience.”
Perhaps the most interesting aspect of the filing is the synopsis of the events in 2016 that led to the departure of founding CEO Renaud Laplanche and the ensuing aftershocks that pummeled the online lender.
As the presentation explains, the Board oversaw resolution of unique challenges in 2016.
The issues uncovered compelled the Board to take “decisive steps” which included the rebuilding of the executive team, establishing new loan auditing and quality standards, code of conduct retraining and updated policies for employees. Obviously 2016 was a challenging year for LendingClub as loan originations dropped from $2.75 billion in Q1 2016 to $1.955 billion in Q2. A decline of almost $800 million. Originations have hovered at around $2 billion since but net revenues have inched higher.
The 2017 Annual Meeting of Stockholders of LendingClub Corporation will be held on June 6, 2017 at 11:00 a.m. PT via the Internet at www.virtualshareholdermeeting.com/LC2017.