Sallie Mae Boosts Investor Confidence As Terracciano Named Chairman

Struggling in the midst of the credit crises and failed buyout, student lending giant Sallie Mae announced executive changes that are clearly an attempt at appealing to worried investors and making up for its significant losses. The company named banking executive Anthony P Terracciano as Chairman, replacing Albert L Lord, who will continue to serve as CEO. Though Lord has been the target of some criticism in the last few months as a result of the setbacks and losses, Sallie Mae stresses that the positions of Chairman and CEO have long been separate. Analysts, however, are quick to point out the failed buy-out and a decidedly “disastrous” conference call that Lord led in December that may have motivated the company to do damage control (see article edited by Andrew Ross Sorkin in The New York Times DealBook ).

News of the executive change sent Sallie Mae shares rising, suggesting that investors hold some confidence as to Terracciano’s ability to spark substantial change. NewsVisual created an IntellectSpace Knowledge Map of the new Chairman’s notable connections attained over his career, which offers perspective into why he was chosen for the job and how corporate ties and executive experience will go far in facilitating a turnaround at Sallie Mae.

As illustrated in this Knowledge Map, Terracciano holds a wealth of experience leading major financial institutions. He previously held top leadership roles with First Union, which later became Wachovia, First Fidelity, Chase Manhattan and Mellon Bank. Also, having served as a Director at a number of companies, including Avaya, Knoll and Ikon, adds value to Terracciano’s resume and serves to increase confidence that he has the connections and experience rescue Sallie Mae.

Terracciano certainly has a major feat ahead of him as the man responsible for presiding over Sallie Mae and leading a turnaround as Chairman, though it is likely that his past career as a leader in finance will go far in bringing about future success in his latest endeavor.

Click here or copy this link into your Internet Explorer browser for an interactive version of this IntellectSpace Knowledge Map: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=11f3fbde-7e11-43f9-927b-ef26062fc67f