Sounds like the behind-the-scenes workings at loanDepot have been a little…messy?
Since being ousted as the company’s executive chairman, Anthony Hsieh has urged for a board refresh amid challenging market conditions. And now, Hsieh has taken his frustrations public.
In a press release, Hsieh announced his plans to nominate Steven Ozonian for election to the company’s board at the Company’s 2023 Annual Meeting of Stockholders—intending to vote all of his shares in favor of Ozonian. Hsieh holds over 40 percent of the economic interest and approximately 57 percent of the combined voting power of the loanDepot.
The release states that Hsieh has engaged with the Board over the last few months in an effort to persuade members of the urgent need for board refreshment to address the challenges the company faces in this economic environment. Because the Board has not been receptive to these efforts, Hsieh has exercised his right as a stockholder to unilaterally nominate Ozonian for election at the next Annual Meeting of Stockholders in place of one of the company’s existing incumbent directors.
“This is not a decision I came to lightly. The past year has been difficult. In the face of challenge, I firmly believe it is important to seek out fresh perspectives,” Hsieh wrote in a letter to shareholders. “As leaders of this Company and stewards of stockholder capital, the Board must always challenge itself to be a dynamic center of passionate, informed and relevant perspectives to help guide the Company to future success.
“Mr. Ozonian’s experience and perspective will be additive to the loanDepot Board of Directors at this critical juncture for the Company,” Hsieh continued. “The recent rise in rates and challenging macroeconomic environment make Mr. Ozonian’s potential appointment all the more urgent.”
Ozonian currently serves as CEO of the Williston Financial Group and on Williston’s Board of Directors. He also currently serves and has served on the Board of Directors of LendingTree.
“There are currently eight directors serving on the Board [of loanDepot], only two of whom have terms expiring at the Annual Meeting. When I raised the idea of adding Mr. Ozonian to the Board, I suggested that the Board consider replacing one of its directors who is not up for election this year with Mr. Ozonian,” Hsieh continued. “My understanding is that certain members of the Board do not wish to do so.”
loanDepot responded by telling Inman, in part: “It is surprising and disappointing that Mr. Hsieh would attempt to circumvent the company’s process for assessing potential director nominees,” board member Dawn Lepore said in a statement on behalf of the board. “We question why he would pursue a disruptive proxy contest to install his nominee when Mr. Ozonian has already been, and continues to be, under evaluation.”