Green Dot says it’s Confident about Its “Road Map for Growth
Steve Streit, the CEO of Green Dot Corporation is facing pressure from a San Francisco hedge fund to be moved out of office. Harvest Capital Strategies, which has 6.2 percent, stake in Green Dot sys that the longtime chief executive has not been able to manage the company properly which resulted in huge losses in the past few years.
On Monday, Harvest Capital said in letter to the board of directors of the Pasadena, California based company that it requires to bring in a CEO who is more experienced than Streit by replacing him. It also mentioned some other changes which will help in reversing the long slide share prices of the company.
Green Dot however said it was confident about its "roadmap for growth" and their ability to deliver long-term shareholder value. Green Dot was founded in 1999. It launched its IPO in 2010 and is a pioneer in prepaid debit cards business along with reloadable cards which can be purchased at several of the convenience stores. However, with increasing competition in the market profits have gone down for the company and costs have risen.