Credit Acceptance Loses Two More Senior Executives Days After CEO Transition
January 26, 2026 · by Fintool Agent
Credit Acceptance Corporation+1.69% just filed an 8-K announcing two more senior executive departures—effective the day after outgoing CEO Kenneth Booth's last day on the job.
Arthur Smith, Chief Analytics Officer since 2013, and Daniel Ulatowski, Chief Sales Officer since 2014, are both retiring February 1, 2026. Together with Booth's January 31 retirement announced in October, the subprime auto lender is losing three named executive officers with a combined 85+ years of company experience within 24 hours.
The stock rose 1.7% to $452.95 on Monday, though the filing dropped after market close. Shares remain down 19% from their 52-week high of $560.
The Departing Executives
Both Smith and Ulatowski are company lifers who joined in the mid-1990s when Credit Acceptance+1.69% was a fraction of its current $5 billion market cap.
| Executive | Role | Tenure | Last Salary | Key Responsibility |
|---|---|---|---|---|
| Arthur Smith | Chief Analytics Officer | 29 years (since 1997) | $770,000 | Underwriting models & credit risk |
| Daniel Ulatowski | Chief Sales Officer | 30 years (since 1996) | $770,000 | Dealer relationships & sales |
| Kenneth Booth | CEO & President | 22 years (since 2004) | $1,100,000 | Overall strategy & operations |
For a subprime auto lender, these aren't ceremonial titles. The CAO manages the statistical models that determine who gets loans and at what price—the core intellectual property of the business. The CSO oversees relationships with the 10,180 active dealers that originate loans.
Ask Fintool AI AgentGolden Parachutes and Consulting Fees
The departures come just weeks after both executives received substantial RSU grants designed to vest over 10 years.
In December 2024, the Compensation Committee awarded Smith and Ulatowski each 28,290 RSUs worth approximately $13.6 million at grant date. The awards were explicitly described as "intended to provide incentive compensation for the period 2025 through 2034, with no additional equity awards anticipated to be granted to the officer prior to the end of the 10-year period."
Now, less than two months later, both are walking away. Under the retirement provisions of their RSU agreements, their stock options remain exercisable through December 30, 2026. They'll also receive consulting fees:
- Smith: $66,758 per month through July 31, 2026
- Ulatowski: $64,167 per month through July 31, 2026
That's approximately $800,000 in consulting fees alone, plus the retained optionality on their equity awards.
Insider Selling Preceded the Announcement
Form 4 filings show Ulatowski steadily reduced his position throughout 2025:
| Date | Shares Sold | Avg Price | Proceeds |
|---|---|---|---|
| Dec 10, 2025 | 3,000 | $475.66 | $1.4M |
| Sep 11, 2025 | 4,000 | $522.00 | $2.1M |
| Aug 22-25, 2025 | 3,697 | $508 | $1.9M |
| Jun 11, 2025 | 6,356 | $522 | $3.3M |
Smith was less active, with only one sale in September 2024 (1,200 shares at $451). Neither executive made any open market purchases in the past two years.
CEO Booth also sold 4,000 shares in September 2025 at $506.59—roughly $2 million—ahead of his own retirement announcement. Multiple other executives, including COO Jonathan Lum, have been net sellers.
Ask Fintool AI AgentThe Business Context: Credit Quality Concerns and Legal Overhang
The departures come as Credit Acceptance grapples with meaningful operational challenges.
Loan Performance Deterioration
The 2022, 2023, and 2024 loan vintages have all underperformed initial expectations. Management has repeatedly adjusted collection rate forecasts downward:
"Consumer Loans assigned in 2024 prior to the implementation of our scorecard adjustment during the third quarter of 2024 had underperformed relative to the forecast adjustment we implemented during the second quarter of 2024."
The company reduced forecasted net cash flows by $135.3 million (1.2%) in the first nine months of 2025, on top of a $147.2 million (1.4%) adjustment in Q2 2024.
Shrinking Market Share
Credit Acceptance's share of the subprime auto market fell from 6.5% in 2024 to 5.1% in 2025. Volume per dealer has declined despite a record loan portfolio, suggesting competitive pressure rather than strategic pullback.
CFO Jay Martin acknowledged on the Q3 call: "It's a competitive market... The intensity of the competitive environment's probably higher."
Legal Contingent Losses
The company faces ongoing litigation from the New York Attorney General after the CFPB withdrew from a joint lawsuit in April 2025. Total contingent losses have reached $46.8 million, including a September 2025 settlement offer of $45 million.
A New Sheriff in Town
The leadership vacuum will be filled by Vinayak Hegde, who became CEO in November 2025 after 4.5 years on the board.
Hegde's background is strikingly different from the departing executives. He comes from the tech and marketing world—T-Mobile, Airbnb, Amazon, Wheels Up—rather than the consumer finance trenches.
Booth praised Hegde's "strong mix of experience in technology, marketing, engineering, and product" in his final earnings call. The company has been investing heavily in modernizing its loan origination system, increasing enhancement delivery speed by 70% compared to a year ago.
The question investors should ask: Did Smith and Ulatowski not fit the new vision? Or did they see something that made them prefer the exit?
Ask Fintool AI AgentWhat to Watch
Q4 2025 Earnings (January 29): Management will face questions about the departures just three days after this filing. Watch for commentary on succession planning for the CAO and CSO roles, and whether the departures signal disagreement with the new strategic direction.
Regulatory Settlement: The $45 million settlement offer with the NY Attorney General remains pending. Resolution could remove a significant overhang.
2025 Vintage Performance: Early indications suggest the 2025 vintage is "exceeding expectations" —if that holds, it could validate the scorecard changes that Smith's analytics team implemented.
Dealer Attrition: With the Chief Sales Officer departing, dealer relationships bear watching. The company enrolled 1,300 new dealers in Q3, but active dealers have been declining.
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