Today, the Wall Street Journal broke the story that Prosper CEO Aaron Vermut is stepping down as CEO. This afternoon Prosper has released an official statement confirming this story. What we now know is that current Chief Financial Officer David Kimball will be replacing Aaron as CEO effective December 1st. David has been with the company since March of this year when he joined Prosper from USAA.
Aaron has been the CEO of Prosper since March, 2014 when he, Steve Vermut (Executive Chairman) and Ron Suber (President) first took the company under their control. Sources have also told Lend Academy that Steve Vermut will be stepping down as Executive Chairman and leaving the company.
Aaron Vermut will continue to serve as a director at the company. We contacted Ron Suber and he said in a brief statement that he is staying with Prosper and is fully committed to supporting the new CEO David Kimball.
Our Take
When I was at Prosper’s office in San Francisco a few weeks ago I sat down with Aaron Vermut and Ron Suber for a chat. At the time I couldn’t help but notice that Aaron seemed a bit burned out. It has been a very tough year for everyone in the industry and I think Prosper has had it tougher than most. At the time I remember wondering to myself how long Aaron would be sticking around.
I know there will be rumors that he was pushed out by the board or by one of their large investors. Sources inside Prosper dismissed any speculation about the reason, and cited Aaron’s desire to step away from the day to day to take on a more strategic role as a board member. It seems that after almost four years Aaron felt like it was best for the company that he step aside and allow a fresh set of legs to lead Prosper.
I met David Kimball briefly on my last visit and I look forward to getting to know him better. I like the fact that he has a deep background in financial services, he spent 10 years at USAA and many years before that at Ford Motor Credit. He is an experienced banker-type executive and he may be just what Prosper needs for this new chapter.
And now we wait for the 10-Q… to find out the real story
Unfortunately Sean, it looks like we will have to wait a little longer than usual for the 10-Q this quarter.
The entire team management needs to be replaced.
Many of them have been replaced recently. Not sure who else you are referring to.
The industry could really use some calm seas, but another shoe might be about to drop. Prosper filed this today:
“Prosper Marketplace, Inc. and Prosper Funding LLC (collectively, the “Registrants”) are unable to complete the compilation, dissemination and review of the information required to be presented in the Form 10-Q for the period ended September 30, 2016 (the “Quarterly Report”) in a timely manner without unreasonable effort or expense due to a delay experienced by the Registrants in completing its financial statements and other disclosures in the Quarterly Report relating to a recent arbitration decision. As a result, the Registrants are still in the process of compiling required information to complete the Quarterly Report as of and for the period ended September 30, 2016. The Registrants expect to file the Quarterly Report within the extension period provided by this form.”
I am aware of this arbitration decision and I am not that concerned about it.
Who were the sucker investors that let him cash out at a $2 BILLION valuation. This is too funny.