Dive Brief:
- Discover Financial Service's top lawyer, Hope Mehlman, is leaving the Riverwoods, Illinois-based company with a cash payment of up to $1 million.
- Mehlman, who is Discover’s executive vice president, chief legal officer, general counsel and corporate secretary, will depart once an upcoming merger with Capital One is finalized, the company said in a Securities and Exchange Commission filing Friday.
- Mehlman will become chief legal and corporate affairs officer for Ally, the bank announced Monday.
Dive Insight:
Mehlman still has plenty of work on her plate before her departure.
Capital One customers have sued to block the company’s acquisition of Discover, which would create the nation's largest credit card company.
Additionally, the acquisition still needs regulatory approval, and consumer advocates have asked regulators to block the deal on the grounds that it would stifle competition and increase prices.
While Mehlman's contract requires her to stay through Jan. 9, Discover elected to let her leave before then and to waive her obligation to repay her sign-on bonus, which she would have owed the company for leaving before her contract expired, the filing said.
However, Discover agreed to pay Mehlman a cash lump sum of $850,000 to $1 million, as long as she isn't fired for cause before her final day with the company.
She has provided legal counsel to major corporations for about two decades, according to a news release announcing her move to Discover two years ago.
Mehlman joined the credit card provider in 2022 after leaving Bank of the West, where she served as the bank's general counsel and corporate secretary.
Mehlman was paid $6.6 million in 2023, according to a March 15 SEC filing. That figure includes her base salary of $553,000, along with stock awards and a $3.4 million signing bonus.
Representatives of Discover did not immediately respond to an email seeking additional comment.