Debt Buyer Encore Capital Announces New CEO

Debt buyer Encore Capital Group, Inc. (NASDAQ: ECPG) this week announced that its board of directors has elected Ken Vecchione to succeed Brandon Black as chief executive officer.  Vecchione will serve as president while Black will continue serving as CEO through May 31, 2013, after which Black will remain available to the board and management on a consulting basis.

“Encore is very well positioned and on a clear upward trajectory to continue delivering strong results for shareholders,” said George Lund, executive chairman of Encore’s board of directors.  ”Ken Vecchione is a leader with more than 35 years of experience and relationships in senior management roles at large, publicly traded banking and credit card companies. With Ken’s deep and diverse background in operations, corporate strategy, risk management and regulatory affairs, we found the ideal chief executive officer to drive Encore’s future success.”

Vecchione has held a number of senior positions at large financial services companies, including chief operating officer of Western Alliance Bancorporation, chief financial officer of Apollo Global Management, LLC and chief financial officer of AT&T Universal Card Services.  Perhaps most notably, Vecchione served for three years as vice chairman and chief financial officer of MBNA Corporation.  At the time, MBNA was the world’s largest independent credit card lender.

“I’m thrilled to be joining Encore at a time when the company is clearly leading the industry into its next phase of maturity,” said Vecchione.  ”Thanks to the depth and strength of the current management team and outstanding employees around the world, the company is performing better than it ever has.  Encore is well positioned to continue delivering shareholder value, given its efficient operating platform, low-cost capital and emphasis on analytics in understanding financially distressed consumer behavior.”

The move comes at an important time for Encore as it expects to soon integrate the operations of Asset Acceptance Capital Corp. (NASDAQ: AACC). Encore announced last month that it was acquiring rival Asset for $200 million in a deal expected to close in the current second quarter.

Last year, Black shared with Encore’s board of directors his desire to explore a new phase in his career.  After more than 15 years with the San Diego-based ARM company, he felt the timing was right for a leadership change that would help take the company to the next level.  Shortly thereafter, the board engaged a consulting firm to identify and evaluate potential successors.  After a thoughtful and thorough search process, a final agreement was reached between the board and Vecchione for the financial services industry veteran to join Encore.

“Encore has been incredibly fortunate to have had Brandon Black at the helm for the last eight years,” Lund said.  ”During his tenure, the company built significant cost and operational advantages, expanded into new asset classes and made acquisitions that established Encore as the leading debt management and recovery solutions provider.  Just as important, through the industry’s first Consumer Bill of Rights, Encore made bold and meaningful commitments to treat consumers with the respect they deserve.”

“I’m proud of everything we’ve accomplished together as a team at Encore,” said Black.  ”We have the people, capital, credibility and a world of possibilities ahead of us.  As a leader, the greatest compliment is for the company to succeed after you have gone.  As I’ve come to know Ken and his vision, I’m confident that he’ll be able to take Encore into the future.”