Resignation of Sallie Mae CEO Draws Speculation About Motives

Abstract:

Sallie Mae announced the abrupt resignation of its chief executive officer Thomas J. Fitzpatrick yesterday in what some are seeing as a way to make amends and improve the company’s image with federal legislators. Fitzpatrick has been the CEO of Sallie Mae for two years and was expected to remain the CEO even after the $25 billion buyout from J.C. Flowers later this year. Given the suddenness of the resignation, many are wondering if this is another move by the new management to increase transparency and accountability by the company, two things the Flowers Group announced it wanted to accomplish during the buyout.

Originally published in NASFAA’s Today’s News on 05/23/07.