Providian Engages Salomon Smith Barney and Goldman, Sachs & Co.
Company Retains Russell Reynolds Associates for New CEO Search
SAN FRANCISCO, Oct 31, 2001 /PRNewswire via COMTEX/ -- Providian Financial Corporation (NYSE: PVN chart, msgs) announced today that it has engaged Salomon Smith Barney and Goldman, Sachs & Co. to assist the company and its board of directors in its analysis, evaluation, and consideration of a broad array of financial and strategic alternatives.
On October 18, 2001, Providian announced a five-point plan to improve the company's risk profile and to address the earnings challenges facing the company. The company continues to execute on this plan. The elements of the plan include: reducing lending to the standard segment, accelerating line management cutbacks, focusing marketing dollars to the best risk/return segment, initiating expense reduction review, and maintaining a strong balance sheet and liquidity.
Providian also announced today that it has retained Russell Reynolds Associates to assist the board with the search for a new chief executive officer. On October 18, 2001, Providian announced that Shailesh J. Mehta recommended to the board that he step down as CEO, chairman and president. The company appointed J. David Grissom, a member of the company's board, as chairman. Mr. Mehta has agreed to remain as Providian's CEO and president until a successor is named.
About Providian Financial
Winner of the 2001 Rochester Institute of Technology/USA Today Quality Cup for excellence in customer service, San Francisco-based Providian Financial is a leading provider of lending and deposit products to customers throughout the U.S., and offers credit cards and deposit products in the UK and in Argentina. Providian Financial has been named one of America's Most Admired Companies in a survey by Fortune magazine, one of the nation's top financial institutions by U.S. Banker magazine, and one of the most technologically innovative companies in the U.S. by InformationWeek magazine. The Company has more than $38 billion in assets under management and more than 18 million customer accounts |
