Kimball replaces Vermut as Prosper CEO

AARON Vermut is stepping down as chief executive of US peer-to-peer lender Prosper Marketplace, with finance chief David Kimball (pictured) announced as his replacement.

The move comes after a year of mounting losses which saw 28 per cent of its workforce laid off and prompted Vermut to forgo his salary.

In the first half of 2016, the company reported a net loss of $53.1m (£42.85m), up from a loss of $13.5m in the first half of 2015. The firm also suffered reputational damage when it was revealed that terrorists may have used a loan from the site to carry out the San Bernardino shootings.

It is believed that Vermut had been planning to leave the company for some time in order to spend more time with his family, according to the Wall Street Journal. He will remain on the board of directors, although his father, Stephan Vermut, will reportedly step down as the company’s executive chairman.

Kimball has acted as Prosper’s finance chief for just over six years and previously spent nine years at financial services provider USAA. He will take over as chief executive at the end of November.

“Since joining Prosper Marketplace, David has shown that he is a strong leader with a vision for how to take this company into the future,” said Vermut. “I’m incredibly proud of the company we’ve built, and feel this is the right time for me to step away from day-to-day operations and transition the leadership of this company to David. As a board member, I will continue to work with him and the entire executive team on Prosper’s growth and success moving forward.”

Kimball said: “I have been impressed with the dedication and professionalism of my Prosper coworkers and I look forward to continuing the momentum established by Aaron and the team.”