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.

Board Experience May Boost Investor Confidence in Sallie Mae Public Stock Offering

In an effort to recover from the unsuccessful move of betting on its own stock price, student-loan giant SLM Corp (Sallie Mae) announced that it plans on raising $2.5 billion through a public stock offering. Shares have fallen significantly since the failed buyout attempts earlier in the year, with the company now desperate to make up for its losses. Sallie Mae had originally agreed to purchase its own shares at a set future price, expecting them to have increased substantially. Unfortunately for the company, its stock price failed to meet expectations, declining instead but leaving Sallie Mae responsible for paying billions (see article by John Hechinger in The Wall Street Journal).

Analysts aren’t completely convinced that a public offering could be enough for Sallie Mae to raise the needed funds. Investor confidence, however, could work to change their minds. NewsVisual created and IntellectSpace Knowledge Map to illustrate the corporate network of the leadership team behind Sallie Mae. Extensive experience and the right connections of the company’s Board of Directors could go far in convincing potential investors that Sallie Mae will be worth the buy and come out strong in the coming year.