Former Morgan Stanley Chief Executive Officer John Mack has joined the board of startup LendingClub Corp., marking at least the third advisory role he’s taken in the past six months.
Mack becomes the fifth director at LendingClub, a closely held firm based in San Francisco that lends consumers $1,000 to $35,000 to pay off credit cards, consolidate debt and take vacations, according to a statement. The loans are then sold on its website to investors. Through April 10, the company had funded more than $588 million in loans since starting in 2007. It also runs two funds with more than $100 million in assets.
“LendingClub has created an innovative platform that provides investors with low-cost access to high-quality consumer credit assets, and at the same time makes credit more affordable to consumers,” Mack said in the statement. He’ll be paid with stock options that vest over the next four years rather than cash, according to Chief Executive Officer Renaud Laplanche.
Mack, 67, stepped down as chairman of Morgan Stanley at the end of 2011, two years after leaving the CEO role he held at the Wall Street securities firm from 2005 until the end of 2009. Mack boosted businesses including trading, private equity and mortgages, a strategy that backfired when the bank posted its first quarterly loss in 2007 on the eve of the financial crisis.
He’ll join Laplanche, 41, on the LendingClub board, alongside Norwest Venture Partners’ Jeff Crowe, Daniel Ciporin of Canaan Partners and Rebecca Lynn of Morgenthaler Ventures, according to the statement. The three firms own stakes in LendingClub.
Mack has focused his public efforts since leaving Morgan Stanley on advising financial firms. Last month, private-equity fund KKR & Co. named Mack a senior adviser for financial-services investments. In November, payment-services firm Rev Worldwide said Mack became an investor and board member. Mack is also a member of the international advisory council at China Investment Corp., according to its website.