Discover Financial Services announced on March 26, 2024, the Board of Directors of the company accepted the resignation of Michael G. Rhodes from his positions as Chief Executive Officer of the Company, effective April 1, 2024 (the Effective Date). Mr. Rhodes, who was not expected to have a long-term role at the combined company after completion of the Company?s merger with Capital One Financial Corporation, informed the Board that he has accepted a job offer at another financial institution. In connection with his resignation, on March 27, 2024, the Company and Mr. Rhodes entered into a letter agreement.

Pursuant to the terms of the Rhodes Letter Agreement, Mr. Rhodes will continue to serve as Chief Executive Officer of the Company through April 1, 2024 and will serve as an advisor to the Interim Chief Executive Officer of the Company from such date through April 12, 2024. On March 26, 2024, the Board appointed J. Michael Shepherd as Interim Chief Executive Officer of the Company, effective April 1, 2024. Mr. Shepherd is the former Chairman and CEO of BancWest Corporation and its subsidiary, Bank of the West, the US retail arm of BNP Paribas Group.

Bank of the West was acquired by BMO in February of 2023. Mr. Shepherd served as the Chairman of BNP Paribas USA Inc. from 2016 to 2019 and as a Director from 2016 to February 2023. He joined Bank of the West in 2004 and held a succession of positions, including CEO, General Counsel, Chief Administrative Officer and President.

Before joining Bank of the West, Mr. Shepherd was General Counsel of The Bank of New York Company Inc. and of Shawmut National Corporation. He also served in government as Senior Deputy Comptroller of the Currency, Associate Counsel to the President of the United States and Deputy Assistant Attorney General. Mr. Shepherd is also a director of Pacific Mutual Holdings Inc. and previously was a director of First Hawaiian Inc. He previously served as a Member and President of the Federal Advisory Council of the Federal Reserve Board, as a Member of the FDIC Advisory Committee on Economic Inclusion, and as a Director of The Clearing House.