B. Riley Financial is bringing in a new chief financial officer as the firm continues to contend with delayed regulatory filings, soured investments and increased scrutiny from regulators.
The Los Angeles-based financial services company announced that Scott Yessner will become CFO effective June 3.
He succeeds Phillip Ahn, who is leaving to “pursue another opportunity,” according to a company statement released Monday.
Yessner has served as a strategic adviser to B. Riley for the past two months. He previously held CFO roles at California Expanded Metal Products Company and Universal Technical Institute, where he led transformations that helped both firms achieve significant improvements in EBITDA. His earlier career included divisional CFO roles at Wells Fargo Advisors and MUFG Union Bank.
“Scott brings substantial experience as a public company CFO, having led successful business transformations and managed complex audits,” Bryant Riley, chairman and co-chief executive officer, said Monday. “We are confident he has the right skillset for B. Riley as we evolve our business and deliver value for our clients and shareholders.”
The change in finance leadership comes as B. Riley struggles to recover from a battery of regulatory and financial challenges that have plagued it for more than a year.
In the latest development last week, the company missed its latest deadline to file quarterly results with the Securities and Exchange Commission, citing continued efforts to finalize its 2024 annual report, which is now late for the third consecutive year. B. Riley previously pledged to return to timely financial reporting in 2025.
Delays have coincided with regulatory probes and investment write-downs, including losses tied to Franchise Group Inc., a holding company with various retail intersts that filed for bankruptcy last year. The firm’s share price has declined sharply from more than $40 in 2023 to under $3.50.
B. Riley recently estimated a first-quarter profit of between $1 million and $6 million, helped by one-time gains. It has also taken steps to deleverage by selling assets and transfering interests in several divisions – that strategy includes a partnership witn Oaktree Capital Management announced in October – and executing debt swaps.
According to Bloomberg, the company netted $26 million from the sale of part of its wealth management business to Stifel Financial and expects about $30 million in gains from selling Atlantic Coast Recycling.
On Monday, the company said it intends to file a Form 8-K outlining the terms of Yessner’s employment agreement. Under that agreement, Yessner is expected to receive 100,000 shares of restricted stock upon his start date.
He has also been granted options to purchase 300,000 shares of common stock, with one-third exercisable at $7 per share, another third at $10, and the final third at $12.50. The options are scheduled to vest in equal portions on the first, second and third anniversaries of his start date.
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