Plano-based Upbound Group Inc. announced that EVP and Chief Financial Officer Fahmi Karam will succeed Mitch Fadel as CEO and will join the company’s board, effective June 1.
Fadel has decided to retire as CEO and step down from the board after 40 years with Upbound. He’ll continue to serve as CEO and remain on the board until June 1 and will work closely with Karam to ensure a seamless transition, the company said. The board has begun an internal and external search to identify Upbound’s next CFO and has engaged an executive search firm.
“This transition is the culmination of a deliberate and thoughtful succession planning process in which Fahmi’s increasing contributions led to the Board’s unanimous decision that he is the clear choice to serve as Upbound’s next CEO,” Board Chairman Jeffrey Brown said in a statement. “Fahmi is a proven leader with nearly 25 years of strategic and financial experience and an unrelenting commitment to our mission to expand financial inclusion. Fahmi brings a strong track record of operational excellence and deep knowledge of the business and of our consumers. As CFO, Fahmi has played an instrumental role in Upbound’s success, and the Board is confident that he is the ideal person to build on our solid foundation and accelerate our growth strategy.”
Follows $460M acquisition in December
The CEO news comes on the heels of a big recent acquisition. In December, Upbound Group, whose brands include Rent-A-Center and Acima, announced it agreed to buy New York City-based Brigit, a leading financial health technology company, for $460 million in cash and shares of Upbound common stock. Upbound called the deal “a logical next step” reflecting its strategic focus on expanding its tech-driven financial solutions for consumers who are underserved by the traditional financial system.
Karam said he’s excited about Upbound moving forward.
“I’m honored to become the next CEO of Upbound at such an exciting time for the company,” Karam said in a statement. “It’s been a pleasure to work with Mitch to drive growth, expand our platform and digitally transform our business to provide more innovative, inclusive, and technology-driven solutions dedicated to underserved consumers. I look forward to building on Mitch’s many accomplishments, continuing to expand our platform of impactful financial solutions and technologies, and driving increasing value for our shareholders and customers.”
‘Stronger than ever’
Brown said Fadel’s leadership has positioned the company well.
“On behalf of the board, we thank Mitch for his effective leadership over many years and for strongly positioning Upbound to capitalize on the robust opportunities that lie ahead,” he said. “Under Mitch, the business has been transformed from Rent-A-Center’s brick-and-mortar focus into Upbound’s differentiated omni-channel lease-to-own platform with virtual capabilities in over 35,000 merchant locations and national e-commerce partners, in addition to our recently expanded digital solutions through the newly acquired financial health app, Brigit. We are grateful for his commitment to assist in this important transition.”
Fadel credited his team with Upbound’s success.
“It’s been a great honor to lead Upbound,” Fadel said in a statement. “Thanks to our incredibly talented team, we have cemented Upbound as an industry leader, expanded our impact, and grown our portfolio of best-in-class solutions that continue to improve the lives of our customers. With Upbound stronger than ever, we are now poised to enter an exciting new chapter of growth. It has been a pleasure to work alongside Fahmi over the past two and a half years and I am confident he is the right choice to lead Upbound. I look forward to continuing to work closely with him during the transition.”
Upbound Group describes itself as a technology and data-driven leader in accessible and inclusive financial solutions that address the evolving needs and aspirations of underserved consumers.
The company’s customer-facing operating units facilitate consumer transactions across a wide range of store-based and digital channels, including over 2,300 company branded retail units across the United States, Mexico, and Puerto Rico.
Don’t miss what’s next. Subscribe to Dallas Innovates.
Track Dallas-Fort Worth’s business and innovation landscape with our curated news in your inbox Tuesday-Thursday.
R E A D N E X T
-
Molly Langenstein has been appointed as an independent director to the board of directors of Plano-based Upbound Group Inc., a provider of technology-driven, flexible leasing solutions for consumers through its operating brands that include Rent-A-Center and Acima. According to Upbound Group CEO Mitch Fadel, Langenstein's "extensive leadership delivering omni-channel solutions to consumers" and her senior executive and prior board experience will be a valuable addition to the company's board. Fadel said the company looks forward to her insights and contributions as it implements "technology-driven solutions to enable our customers to shop when, how, and where they want." Langenstein is a…
-
Upbound—parent company of Rent-A-Center and Acima—called the deal "a logical next step" reflecting its strategic focus on expanding its tech-driven financial solutions for consumers who are underserved by the traditional financial system.
-
Charisma, a social coaching program developed by the Center for BrainHealth, uses generative AI and gaming technology to create realistic virtual environments, helping individuals improve social skills with the guidance of a coach—and now it’s scaling up with AWS.
-
At Alaska Air, Charu Jain drives innovation strategy and oversees merchandising, She's known for leading large-scale tech overhauls—skills Upbound can tap.
-
New architectural renderings by the Copenhagen-based Bjarke Ingels Group "reflects the resilience and richness of African American culture and aims to foster education, growth, and connection within the community," the museum said.
