Beset By Late Filings, WageWorks Hires Outside Firm for Finance Help

By Maria Armental 

WageWorks Inc., which recently shuffled its top ranks after discovering financial irregularities, is turning to an outside firm to fill its chief financial officer post on a temporary basis.

On Monday, the company said it had signed a contract with Randstad Holding NV's U.S. subsidiary Tatum under which Ismail "Izzy" Dawood will be paid $23,000 a week in addition to reimbursement for other expenses and a housing allowance.

Mr. Dawood formerly served as CFO of Santander Consumer USA Holdings Inc., the troubled U.S. car-loan unit of Banco Santander SA.

Mr. Dawood, who would be responsible for the company's accounting and financial matters until a permanent CFO is hired, will work with WageWorks's auditors to finalize fourth-quarter and fiscal 2017 financial results and 2017 audit.

Last week, WageWorks replaced some of its top leaders -- including its chief executive officer -- and said it needed to restate financial results from the past two years after an audit found "material weaknesses" in its reports. The shakeup resulted in Joseph Jackson stepping down as CEO and Colm Callan resigning as CFO.

The California company, which administers employee-benefits programs such as health-savings accounts and benefits programs for transit and parking, has said it would launch a search for a permanent finance chief.

Mr. Dawood will also evaluate WageWorks's finance and accounting operations and make recommendations to strengthen them, the company said. He is eligible to receive a completion bonus of $200,000 upon meeting certain milestones if he remains in an interim capacity.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

April 09, 2018 18:21 ET (22:21 GMT)

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