It has been more than two years since Thomas Dundon was forced out of Santander Consumer USA, but the final tally on the value of his separation agreement just came in: $713 million.
The Dallas subprime auto lender laid out new details of its agreement with Dundon in a regulatory filing late Friday. Dundon was a co-founder of Drive Financial, an auto finance company that Santander acquired in 2006 and
Under the final agreement, Santander Consumer will pay a lump sum of $66 million to Dundon, or $50 million less than a previously agreed upon amount. At the same time, the company agreed to release certain restricted shares that he held in the company.
Additionally, Santander Consumer completed its acquisition of Dundon’s full stake in the company for $942 million. Dundon used a portion of the proceeds, about $295 million, to repay an outstanding loan from the company.
The transactions were completed on Nov. 15, according to the filing. A spokeswoman for Santander Consumer confirmed that Dundon netted $713 million before taxes.
In the years since Dundon’s departure, the company has continued to struggle. It has been dogged by questions about its accounting methods after
This summer Dundon’s successor, Jason Kulas, abruptly resigned.
Now that the transaction with Dundon has been finalized, Santander Holdings has also taken a larger ownership stake in the auto lender. As of Sept. 30, Santander Holdings held a
Under an enforcement order with the Federal Reserve in March, Santander Holdings was ordered
Though Dundon has officially cut his ties with Santander Consumer, he remains active in financial serices. In early November, Dundon Capital Partners, which he leads,
Redpoint is an alternative credit manager that invests in fintech and specialty finance. As part of the deal, Dundon was named to Redpoint’s board.
