In the last trading session, the stock price of MBIA Inc. (NYSE:MBI) declined more than 8% to close the day at $7.95. In the month of August, the company announced that its Board has elected William C. Fallon to the role of CEO of MBIA, effective September 15, 2017.
This marks a close to company’s long term succession strategy, which has been followed over the preceding two years. Jay Brown has stepped down from his position of CEO, effective September 15, 2017. He intends to conclude his service on the company’s Board as of the Annual Shareholder meeting in May 2018.
The highlights
Charles Rinehart, the Chairman of MBIA board, expressed that one of the major roles of a board and respective management is to have a strong long term succession plan. Over the preceding years, Brown has worked with their independent board members to list and transition management to prepare them for when he steps down to pursue his next challenge.
Bill has associated with Brown for the last decade in getting the firm through many challenges created by the financial crisis. He is well prepared to pursue the additional leadership responsibility for MBIA. The company owes Brown a big thank-you for joining back in 2008 and developing a plan to get them through the tough circumstances they faced at that time.
MBIA’s immediately previous Chairman Mr. Daniel Kearney added that Brown’s return to the firm in 2008 showed to be absolutely important to company’s strong navigation through the financial crisis.
His vision, deep understanding and leadership capabilities helped MBIA to design and implement a transformation plan, overcoming numerous financial and legal challenges, and its operating firms were able to meet all of their insurance payment dues, consensually commute insurance contracts, and recover claims payments from financial entities that defrauded them. They were extremely lucky to have Brown at the helm during this choppy period.