Jay Brown to Step Down as CEO effective September 15; Bill Fallon
Elected CEO
Leadership Change Fulfills Succession Plan Designed by Brown and
Independent Directors; Implemented Over Past Two Years
PURCHASE, N.Y.--(BUSINESS WIRE)--
MBIA Inc. (NYSE:MBI) (the Company) today reported that its Board of
Directors has elected William C. Fallon to the position of Chief
Executive Officer of MBIA Inc., effective September 15, 2017, bringing
to conclusion MBIA Inc.’s long term succession plan, which has been
implemented over the past two years. MBIA CEO Jay Brown has stepped down
as CEO effective September 15, 2017. He plans to conclude his service on
the MBIA Inc. Board of Directors as of the 2018 Annual Shareholder
meeting in May of 2018.
MBIA Chairman of the Board Charles Rinehart said, “One of the key roles
of any board and their management team is to have an effective long term
succession plan. Over the past several years, Jay has worked with our
independent board members to identify and transition a management team
to prepare us for when he moves on to his next challenge. Bill has
partnered with Jay for the last decade in getting the company through
the enormous challenges MBIA faced created by the financial crisis and
is extremely well prepared to take on the additional leadership role for
MBIA Inc. The company owes Jay a big thank-you for coming back in 2008
and developing a strategy to get us through the difficult circumstances
we faced at that time.”
MBIA’s immediately prior Chairman Daniel Kearney added, “Jay’s return to
the Company in 2008 proved to be absolutely critical to MBIA’s
successful navigation through the financial crisis. Through his vision,
leadership and deep understanding of the Company, MBIA was able to
design and execute a transformation strategy, overcoming numerous legal
and financial challenges, and its operating companies were able to
satisfy all of their insurance payment obligations, consensually commute
billions of dollars of insurance contracts, and recover billions of
dollars of claims payments from financial institutions that defrauded
them. We were extremely fortunate to have Jay at the helm during this
turbulent period.”
Incoming CEO Bill Fallon said, “I am both humbled and excited to take
MBIA forward into its next stage. Jay has been a mentor and an
inspiration for me. I look forward to his continued guidance and counsel
as both MBIA and Jay pursue their future endeavors.”
MBIA CEO Jay Brown stated, “Bill has demonstrated that he has the
leadership and management skills to take MBIA through the next chapter
in its history. Notwithstanding recent developments, the Company is well
positioned, under Bill’s leadership, to create significant shareholder
value in the years ahead. It has been a great honor to serve MBIA in a
wide variety of roles over the past 31 years and I look forward to
following the company’s success in the years ahead.”
Forward-Looking Statements
This release includes statements that are not historical or current
facts and are “forward-looking statements” made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. The words “believe,” “anticipate,” “project,” “plan,” “expect,”
“estimate,” “intend,” “will,” “will likely result,” “looking forward” or
“will continue,” and similar expressions identify forward-looking
statements. These statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected,
including, among other factors, the possibility that MBIA Inc. or
National will experience increased credit losses or impairments on
public finance obligations issued by state, local and territorial
governments and finance authorities that are experiencing unprecedented
fiscal stress; the possibility that loss reserve estimates are not
adequate to cover potential claims; MBIA Inc.’s or National’s ability to
fully implement their strategic plan; and changes in general economic
and competitive conditions. These and other factors that could affect
financial performance or could cause actual results to differ materially
from estimates contained in or underlying MBIA Inc.’s or National’s
forward-looking statements are discussed under the “Risk Factors”
section in MBIA Inc.’s most recent Annual Report on Form 10-K, which may
be updated or amended in MBIA Inc.’s subsequent filings with the
Securities and Exchange Commission. MBIA Inc. and National caution
readers not to place undue reliance on any such forward-looking
statements, which speak only to their respective dates. National and
MBIA Inc. undertake no obligation to publicly correct or update any
forward-looking statement if it later becomes aware that such result is
not likely to be achieved.
MBIA Inc., headquartered in Purchase, New York is a holding company
whose subsidiaries provide financial guarantee insurance for the public
and structured finance markets. Please visit MBIA's website at www.mbia.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170810005262/en/
MBIA Inc.
Greg Diamond, 914-765-3190
Investor and Media
Relations
greg.diamond@mbia.com
Source: MBIA Inc.