Local Sallie Mae executive leaving

December 27, 2007

June McCormack, the top-ranking executive at Sallie Mae's Fishers operation, is leaving the student loan giant, according to a filing with the Securities and Exchange Commission.

The company and McCormack are negotiating a severance agreement, the company's Dec. 12 SEC filing said, but her departure date was not disclosed.

McCormack has led the 2,300-employee Fishers location since 2000, when she played a key role in Reston, Va.-based Sallie Mae's acquisition of Indianapolis-based USA Group, where she was an executive vice president.

The deal brought her back to Sallie Mae, where she had worked for 11 years before joining the local not-for-profit in 1997. She now is the company's executive vice president of servicing, technology, sales and marketing.

At the same time Sallie Mae said McCormack was leaving, the company also announced the departure of Kevin Moehn, its Virginia-based executive vice president of sales and originations. He'll be paid nearly $2 million in severance, according to a recent SEC filing.

Sallie Mae, which manages $160 billion in education loans, said yesterday it plans to raise $2.5 billion by selling shares of new stock and will use most of the money to buy back existing shares.

Under an agreement with Citibank, Sallie Mae must pay nearly $2 billion to buy back stock it had agreed to purchase over the next several years; its falling stock price gave the bank the right to force Sallie Mae to buy the shares immediately.

Sallie Mae stock prices have suffered since a proposed $25.3-billion buyout began to fall apart in July.

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