Navient Corporation and Canyon Partners, LLC announced an agreement that will lead to the company adding to the board Marjorie Bowen and Larry Klane.
Bowen is a former investment banker and Klane is a financial technology investor and former banking executive. Both Bowen and Klane will be nominated by Navient for election at Navient’s upcoming annual meeting, scheduled for June 6.
Canyon owns a minority stake in publicly traded Navient, a student loan servicer that has been branching out into other businesses. Canyon would like to see Navient, which was spun off a few years ago from Sallie Mae, to stick to loan servicing.
Under the agreement, Canyon will withdraw its nomination notice and vote in favor of directors nominated by Navient at the annual meeting. The agreement to add the two Canyon-backed members avoids a boardroom battle.
“We believe this agreement with Canyon is in the best interests of all Navient shareholders, and we welcome Marjorie and Larry to the board,” said Jack Remondi, CEO. “We can now return our full focus to building on our strong first quarter results and continuing to deliver superior value for our customers and shareholders.”
Jonathan Heller, a partner at Canyon, said, “We are pleased to have reached a settlement with Navient that adds two highly qualified directors to the board. We have consistently engaged in an open and constructive dialogue with management and the Board, and we look forward to continuing our productive and cooperative relationship with Navient.”
Board Chair William M. Diefenderfer III decided not sand for election at the 2019 annual meeting. Director Barry L. Williams will retire in the summer of 2019.
