Summary
This Form 8-K filing from Capital One Financial Corporation (COF) on October 16, 2012, announces a significant leadership transition within its risk management function and the auto finance division. Peter A. Schnall will be departing as Chief Risk Officer (CRO) effective June 1, 2013, but will remain with the company in a senior advisory role until April 1, 2014, to ensure a smooth handover. Kevin Borgmann, currently President of Capital One Auto Finance, is appointed Deputy Chief Risk Officer effective November 1, 2012, and is slated to succeed Mr. Schnall as CRO. In addition to the leadership change, the filing details an agreement with Mr. Schnall, which includes an extension and expansion of his non-competition agreement (NCA). This NCA provides for substantial payments totaling $5.3 million over an additional three years post-employment, conditional on compliance with its terms, extending its duration until April 1, 2019. The company also announced the planned appointment of Sheldon F. (“Trip”) Hall as the new President of Capital One Auto Finance, effective November 1, 2012. These changes signal a strategic reallocation of leadership and a commitment to continuity in critical operational areas.
Key Highlights
- 1Peter A. Schnall will step down as Chief Risk Officer (CRO) on June 1, 2013.
- 2Kevin Borgmann, currently President of Capital One Auto Finance, will become Deputy CRO on November 1, 2012, and is expected to succeed Mr. Schnall as CRO.
- 3Mr. Schnall will transition to a senior advisory role until April 1, 2014, with continued compensation and benefits.
- 4Mr. Schnall has agreed to an extended non-competition agreement (NCA) for an additional three years, totaling $5.3 million in payments.
- 5Sheldon F. (“Trip”) Hall is slated to become the new President of Capital One Auto Finance effective November 1, 2012.
- 6The changes aim to ensure a smooth transition in key leadership positions, particularly in risk management and auto finance.