The subprime auto lender Santander Consumer Holdings USA has made two key leadership moves as it faces ongoing accounting problems.
Jennifer Davis, the deputy chief financial officer, will resign at yearend, the Dallas company said in a regulatory filing late Friday. Davis served as interim CFO following a leadership shake-up in July 2015. She then moved to the role of deputy CFO in December after the company hired Izzy Dawood as CFO.
Davis will receive a severance payment of $275,000, equal to one year of her salary, the filing said.
Additionally, Scott Powell, chief executive of Santander Holdings USA, the Boston-based parent company of Santander Consumer, has joined the latter's board of directors. Powell has served as CEO of the parent company since March 2015. His new board appointment will expire in 2017, according to the filing.
The leadership changes come at a critical time for Santander Consumer. The auto lender has twice postponed the release of its second-quarter results, initially scheduled for July 27. Discrepancies between current and former accountants over the way the company calculates its loan-loss allowance have held up the release.
Nearly a year ago Santander Consumer changed its method for calculating the allowance. The moveraised questions about the transparency of the company's loan book as it made an aggressive play tocourt borrowers with blemished credit.
Earlier this year, Santander Consumer was forced to restate earnings going back to 2013, following an inquiry from securities regulators over "material weaknesses" in its accounting, related to its loss-reserve calculations.