Beleaguered student lender Sallie Mae ( SLM) on Monday named a new chairman and CFO. Anthony Terracciano, who has served as a top executive at several major banks, will serve as chairman. CEO Albert Lord, who had temporarily served as chairman, will serve as vice chairman. The company said it has split the CEO and chairman roles for 35 years, save for Lord's three-week stint as chairman. "In a variety of chief executive and board leadership roles, Mr. Terracciano has a long and successful track record of delivering on his commitments to shareholders," Lord said in a company statement. "When I asked the board to consider returning to a split of the chairman and chief executive positions, Tony was the logical choice to lead the board." Terracciano has served as president of First Union, now known as Wachovia ( WB); chairman and CEO of First Fidelity Bank; president and COO of Mellon Bank, now Bank of New York Mellon ( BK); vice chairman of Chase Manhattan Bank, now JPMorgan Chase ( JPM); and non-executive chairman of both Dime Bank and Riggs National Bank. John Remondi, a former Sallie executive and now a portfolio manager at the Boston-based investment company Par Capital Management, will return to the lender as CFO and vice chairman.
Sallie is coming off a trying 2007. The company recently raised $2.5 billion to honor ill-timed commitments to buy back its own stock, after a $25 billion buyout bid by a group led by the private-equity giant J.C. Flowers fell through . The company's dividend also is in question , as other student loan players such as First Marblehead ( FMD) have already cut theirs.