This past spring, Prosper Marketplace CEO Aaron Vermut volunteered to forego his salary for a year, as the online lender, once valued at $1.9 billion, prepared to lay off 28% of its workforce. Investor demand for Prosper’s loans had evaporated and losses were mounting.
But that sacrificial gesture wasn’t enough. Vermut resigned as CEO last week, the company said Monday, and will be replaced by CFO David Kimball.
The news is yet another sign that online lending companies remain in turbulent waters following the scandal that engulfed market leader Lending Club in May.