At Detroit-based Ally, Rhodes will follow Jeffrey J. Brown, who left the CEO post in January after almost nine years as CEO. Doug Timmerman, Ally's president of dealer financial services, has been interim CEO since then. 

Rhodes, who will also join Ally’s board when he takes the CEO post in April, was “not expected to have a long-term role” at Discover, following the card company’s merger with Capital One, Riverwoods, Illinois-based Discover noted in its filing. 

As for Discover, Rhodes will serve as an adviser to Shepherd until April 12, and continue to receive his base salary through the remainder of his employment, Discover said in its filing.

Shepherd will remain a director of the company, but will leave the board’s risk oversight committee while serving as interim CEO and president, Discover said.  

Prior to taking the top post at Discover, Rhodes spent about 12 years at TD, serving as the group head for Canadian personal banking since January 2022. He joined TD in 2011 to lead the North American credit card and merchant services business, and he has some 25 years of experience in financial services.

At Ally, Rhodes will receive an annual base salary of $1 million, according to the company’s SEC filing Wednesday. He also has a total target incentive opportunity for fiscal year 2024 of $10.5 million, with the amount earned payable after the year’s end in the form of a cash incentive (30%) and equity-based awards (70%), the filing said. Equity awards are 60% performance-based stock units and 40% time-based restricted stock units.

By Caitlin Mullen on March 27, 2024
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