#United States #New York #Findell Capital #Oportun Financial #Warren Wilcox

Important Governance Changes Proposed by Findell Capital for Oportun Financial

In a bold move ahead of the upcoming 2025 Annual Meeting, Findell Capital Management LLC has made a public appeal to stockholders of Oportun Financial Corporation. With an approximate 9.5% ownership of the company’s outstanding common stock, Findell is advocating for urgent governance changes to revitalize the fintech giant and reclaim its oversight capabilities.

Findell’s advocacy stems from a profound concern regarding the legacy board's performance, particularly under CEO Raul Vazquez. The firm argues that the current board has enabled strategic missteps that have led to diminished shareholder value. The campaign's centerpiece includes the nomination of Warren Wilcox, a seasoned independent candidate who aligns with Findell's vision for improved governance and operational efficiency.

Urgent Need for Change

Findell points to the necessity of changing the board's leadership as the company grapples with underperformance. The letter addressed to fellow shareholders articulates how the traditional board has not only failed to control rising costs but has also overseen costly acquisitions that deviate from Oportun's core lending mission. The conclusion drawn from their analysis is that without boardroom reformation, Oportun’s potential for recovery and growth remains stifled.

In the last two years, Findell’s involvement led to the appointment of independent directors Scott Parker and Richard Tambor in 2024, which temporarily bolstered the company’s operational strategies. Yet, Findell insists that more drastic changes are essential to steer the company back on course.

Criticism of CEO's Strategy

Central to Findell's criticism is CEO Raul Vazquez's strategy, which they argue has left the company struggling under a ballooned cost structure and rising charge-offs. As Findell states, “Mr. Vazquez has destroyed a great lending business,” indicating that he has prioritized personal ambition over the company’s core values and responsibilities. They illustrate this claim with evidence of Oportun's operating expenses growing dramatically, while competitors have maintained stability, further exacerbating the company’s financial woes.

They also stress the concerning fact that not one of the current legacy board members has experience in lending, leading to decisions that favor the board’s retention over the company’s sustainability. The advocacy push has called for an overhaul of the board structure, a removal of unnecessary costs, and a shift in management outlook to restore Oportun's vision and alignment with its stakeholder interests.

Wilcox's Credentials

Warren Wilcox, who previously served in several pivotal roles across prominent financial organizations, is deemed fit to reshape Oportun's future. His expertise and leadership in consumer financial services could provide the necessary insight to reorient the company's strategies and corporate governance. Findell believes that Wilcox's election would not only end the majority control of legacy directors but also instill a newfound independence into the board.

The emphasis on electing Wilcox at the annual meeting is not simply a move to install a new face but a calculated decision intended to align Oportun’s governance with best practices observed in the finance sector.

Steps for Improvement

Findell Capital Management is calling upon Oportun stakeholders to not only elect Wilcox but also embrace several reformative strategies:

• - Reducing costs drastically to align operating expenses with best-in-class standards,
• - Removing current self-imposed interest rate caps, which could impair the service quality to customers,
• - De-staggering board elections to ensure fresh perspectives are brought to the table regularly,
• - Appointing directors with relevant lending experience to board leadership positions to reinforce sector expertise.

By directing attention to these fundamental changes, Findell aims to restore Oportun to its rightful place in the financial services market, leveraging its strengths and returning value to its shareholders.

Conclusion

As the Oportun Annual Meeting approaches, the discourse surrounding board accountability and reform will likely intensify. Findell Capital Management's call for action represents a clarion call for Oportun stockholders facilitated by an experienced candidate. It underlines the urgent need for strategic governance measures to harness Oportun’s capabilities fully. In the coming weeks, as the proxy campaign unfolds, the focus will remain on reshaping the company's governance to enhance oversight, drive profitability, and ensure the long-term health of Oportun Financial Corporation.