Education finance company Sallie Mae (SLM), formally known as SLM Corp., promoted Wednesday President and Chief Operating Officer John Remondi to take over as its new chief executive officer, effective immediately. Remondi succeeds Albert Lord, who is retiring as vice chairman and CEO of the company and from the board of directors.
Newark, Delaware-based Sallie Mae also said its board has authorized a strategic plan to split the company to create separate education loan management and consumer banking companies that are two separate publicly traded entities in order to unlock value and enhance long-term growth potential.
"Our Board of Directors has determined that Jack is the one to build on Al's long legacy of success and lead Sallie Mae through its next strategic transformation. Jack brings extensive knowledge about our core financial and operational competencies, and the Board and I are confident that he will achieve the important task of unlocking more value from today's franchise by creating two, market-leading companies from the portfolio of businesses managed currently," Chairman Anthony Terracciano said in a statement.
Remondi has most recently served as president and COO since January 2011, after serving as vice chairman and CFO from January 2008.
Remondi first joined Sallie Mae in 1999 through the company's acquisition of Nellie Mae, and was executive vice president of finance from January 2001 to August 2005, when he left the company to serve as a portfolio manager of PAR Capital Management until January 2008.
Lord had in mid-November 2012 announced his decision to retire, effective December 31, but has now advanced his retirement. He has served at the current positions in his second tenure since January 2008 and led Sallie Mae through the 2008 financial crisis, and guided it through the transition to new leadership.
Lord left the company in 1994 to found financial-management consulting firm LCL, Ltd., where he was president and principal shareholder. He then returned to the company to take over the helm through a successful proxy contest in 1997. He had earlier held the positions of vice chairman and CEO from 1997 to 2005, and then served as chairman of the board of directors.
Lord began his career with Sallie Mae in 1981 as its controller, eight years after Sallie Mae's creation as a federally chartered entity created to provide expanded access to education loans. He has also served as chairman of the board and in various executive positions at the company, including being chief financial officer and chief operating officer.
The strategic separation plan will create two companies, each initially owned by Sallie Mae's existing shareholders and the leader in its respective business lines. The completion of the separation, expected within 12 months, is primarily subject to final approval by the Sallie Mae Board of Directors, and does not require a shareholder vote.
The education loan management company will comprise of portfolios of federally guaranteed (FFELP) and private education loans, as well as most related servicing and collection activities, and will be led by Remondi as its CEO.
Meanwhile, the private education loan origination and servicing businesses, including Sallie Mae Bank and the private education loans it currently holds, will operate separately under the Sallie Mae brand, and will be led by DePaulo, executive vice president, banking and finance, as its CEO.
"This strategic separation represents a natural business evolution since FFELP originations ended in 2010. Sallie Mae has successfully adapted its businesses to remain at the forefront of education lending and servicing. Sallie Mae is the largest originator of private education loans, and we have diligently used credit standards that foster responsible borrowing," Remondi noted.
In Wednesday's regular trading session, SLM is currently trading at $25.56, up $2.58 or 11.23% on a volume of 0.34 million shares after hitting a 52-week high of $25.94 in early deals.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.