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Fiserv's Former CEO Frank Bisignano Sold His Stake Before Stock Cratered, Avoiding $245 Million Loss

Strategic Insights

— 1 min read

Frank Bisignano, the former CEO of Fiserv, sold his stake in the company between May and August, netting around $560 million, which would have been valued at $215 million at Thursday's close. Bisignano's sale came after he was confirmed as the commissioner of the Social Security Administration in May. The company's stock has since dropped nearly 50 percent, erasing nearly $35 billion of its market valuation. Bisignano's successor, Michael Lyons, warned of a steep drop in the company's growth trajectory and profits, stating that decisions made under Bisignano's leadership were limiting the company's ability to serve clients and grow revenue.

Key Takeaways:

  • Frank Bisignano, former CEO of Fiserv, sold his stake in the company between May and August, netting around $560 million.
  • Bisignano's sale came after he was confirmed as the commissioner of the Social Security Administration in May.
  • Fiserv's stock has dropped nearly 50 percent since the end of trading on Tuesday, erasing nearly $35 billion of its market valuation.
  • Michael Lyons, Bisignano's successor, warned of a steep drop in the company's growth trajectory and profits.
  • Lyons made a slew of changes to the executive team, including hiring a new chief financial officer and two new co-presidents, and brought in McKinsey to advise the company.
  • A class-action lawsuit filed this summer accuses Bisignano and Fiserv of misleading investors with inflated growth numbers.
  • Fiserv has said it plans to "vigorously" defend itself in the case.

Statistics:

  • Fiserv's stock has dropped nearly 50 percent since the end of trading on Tuesday.
  • The company's stock has eroded nearly $35 billion of its market valuation.
  • Frank Bisignano netted around $560 million from selling his stake in Fiserv between May and August.
  • Bisignano's stake in Fiserv would have been valued at around $215 million at Thursday's close.

Sources:

  • "Frank Bisignano, Fiserv's Former C.E.O., Sold His Stake Before the Stock Cratered" by Michael J. de la Merced (New York Times)
  • Securities filings cited in the New York Times article
  • Class-action lawsuit filed against Fiserv and Frank Bisignano (summer 2022)

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