Discover Financial Services saw its share price fall by more than five per cent on Monday evening after president and CEO Roger Hochschild stepped down with immediate effect.
Hochschild, a 25-year Discover veteran who is also quitting his role as a board member, is being replaced by John Owen on an interim basis while the company looks for a permanent successor.
In late July, Discover disclosed that it is facing a regulatory review over incorrectly classified credit card accounts from 2007.
Hochschild said on an earnings call: “Beginning around mid-2007, we incorrectly classified certain card accounts into our highest merchant and merchant-acquiring pricing tier.”
At the same time, the firm revealed that it has received an unrelated proposed consent order from the Federal Deposit Insurance Corporation.
Discover moved to pause its share repurchasing scheme and has seen its stock all by around 16% since the revelations.
Tom Maheras, chair, Discover, says: "The Board is continuously focused on Discover reaching its full potential across the business, including our commitment to enhancing compliance, risk management and corporate governance."