Santander Consumer USA CEO Thomas Dundon to Step Down

Santander Consumer USA Holdings Inc. said Thursday that its chief executive and chairman, Thomas Dundon, was departing and would be succeeded by President and Chief Financial Officer Jason Kulas.

The announcement, after the market closed Thursday, outlined that Mr. Dundon would "pursue new opportunities" after 20 years at the consumer finance company. Mr. Dundon had been CEO for nine years.

The Dallas-based company, which is approximately 60% owned by Santander Holdings USA, a unit of big Spanish bank Banco Santander, sold shares in a public offering last year.

Mr. Dundon was a founder of the company in 1995. The firm has been involved in subprime auto lending and other consumer loans, and he owns about 10% of the company. A company official said Santander would be purchasing Mr. Dundon's shares from him. Mr. Dundon's stake is worth about $940 million as of the close of trading Thursday.

Mr. Dundon will remain on Santander Consumer USA's board, the company said. He has been president and chief executive since 2006 and chairman since 2013.

Scott Powell, chief executive officer of Santander Holdings USA and head of Santander's operations in the U.S. said: "We thank Tom for his vision and leadership as a founder of SCUSA, and a driver of its growth and success."

For the first quarter, Santander Consumer USA reported net income of $289 million, up from $81.5 million a year earlier. It had total loan originations of $7.4 billion in the first quarter. The stock closed down about 1% Thursday at $26.20.

Write to James Sterngold at [e-mail]

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