#United States #New York #Oportun Financial #Warren Wilcox #Raul Vazquez

Findell Reports ISS Recommends Oportun Stockholders Vote FOR

In a significant turn of events, Institutional Shareholder Services Inc. (ISS), a leading independent proxy advisory firm, has thrown its support behind Findell Capital Partners, LP's push to elect Warren Wilcox to the Board of Directors of Oportun Financial Corporation at the upcoming 2025 Annual Meeting. This recommendation comes amid a backdrop of increasing dissatisfaction among shareholders regarding the company’s current governance and performance indicators under the leadership of long-time CEO Raul Vazquez. The ISS report articulates strong concerns over Oportun’s corporate governance and strategic missteps that have led to a troubling decline in stock prices, approximately 55% since its IPO in 2019.

The Case for Change

Findell argues that the time has come to reassess leadership at Oportun and pivot towards a future that aligns better with shareholder interests. The ISS report notes that the board's insular approach and a series of questionable governance policies have contributed to a lack of accountability that harms the company’s prospects. Key findings from the ISS report include:

Value Destructive Decisions: The company’s shift away from its core business in 2021 was described as highly detrimental, leading to rapid performance deterioration and rising costs. This change prompted a decrease in profitability and casts doubt on the board's strategic direction.
Poor Governance Structure: The governance practices upheld by the board, including a classified board and the prohibition of shareholder actions outside scheduled meetings, demonstrate a concerning alignment that does not prioritize shareholder value.
Independence Issues: There are significant questions about board independence, particularly with directors who have longstanding ties to CEO Raul Vazquez, potentially stifling effective oversight of management.

With these factors in mind, ISS suggests that electing Mr. Wilcox, who brings a wealth of experience in consumer lending and an unbiased perspective, can rejuvenate the board and reinvigorate the company's strategic focus.

Benefits of Voting for Wilcox

The advisory firm emphasizes the advantages of placing Wilcox on the board while concurrently removing Vazquez. Key points include:
Mr. Wilcox’s involvement is expected to enrich board discussions with fresh insights and an independent viewpoint, countering the entrenched status quo.
In a tough market, board members with relevant experience are likely to champion better governance, ultimately ensuring more judicious decision-making processes.
By contrast, maintaining Vazquez in a position of leadership could perpetuate the downturn in Oportun’s fortunes, owing to his past influence over ill-fated strategic choices.

Call to Action for Shareholders

Brian Finn, Chief Investment Officer at Findell, has emphasized the dire need for change, urging shareholders to vote with confidence for Wilcox and against the continuation of Vazquez's leadership. He has expressed that stockholders should prioritize objective assessments and factual records over persuasive rhetoric from the existing board.

“By electing Mr. Wilcox, shareholders can break free from a history of destructive governance and redirect the company back to its lending roots,” Finn asserts.

Findell encourages all shareholders to cast their votes in favor of Warren Wilcox using the WHITE proxy card and to critically evaluate claims made by the current board ahead of the annual meeting. For more details, shareholders can visit www.OpportunityAtOportun.com.

In conclusion, the upcoming 2025 Annual Meeting is not just a routine event, but a crucial juncture for Oportun’s future direction and governance structure. Shareholders are urged to consider the long-term implications of their voting decisions and to advocate for a strategic renewal with fresh leadership.