FIS taps Walgreens alum for CFO

Dive Brief:

Fidelity National Information Services named James Kehoe — who resigned last month from the CFO post at Deerfield, Illinois-based Walgreens Boots Alliance — to succeed Erik Hoag as the payment giant’s finance chief, effective Monday, according to a Tuesday press release.
Hoag, who is stepping down after just a year in the CFO seat, has held various roles over his 16 years with the company, starting out as segment CFO for banking solutions and more recently working as EVP of finance and subsequently as deputy CFO before being tapped for the top finance position last year, according to his LinkedIn profile. Hoag is leaving to pursue “other opportunities,” the release stated.
FIS CEO Stephanie Ferris, in a statement contained in the release, credited Hoag with his role in the company’s “transformational period of modernization” and for developing the financial strategy behind transactions. Ferris also welcomed Kehoe, citing his international experience and his “record of success in driving shareholder value.”

Dive Insight:

The change comes a year after a flurry of payments companies — including FIS — announced they were bringing on new CFOs amid macroeconomic pressures like inflation and rising interest rates, Industry Dive sister publication Payments Dive reported.

Kehoe is pivoting to the payments sector after serving as the healthcare and pharmacy company Walgreens’ CFO for five years, according to his LinkedIn profile. Prior to joining Walgreens, he was the finance chief for the Japan-based Takeda Pharmaceutical Company and also served a brief stint as CFO for Kraft Foods Group, CFO Dive previously reported.

James Kehoe, Walgreens CFO — James Kehoe

Permission granted by Walgreens Boots Alliance

He also holds a Masters in business studies in finance from University College Dublin, Ireland and a Bachelors of Commerce Degree from University College Galway, Ireland, according to the release.

Jacksonville, Florida-based FIS is switching CFOs on the heels of announcing a major deal. Last month, the mega-payments processor said that it would sell a 55% majority stake in its Worldpay merchant payments processing business to the private equity firm GTCR for $11.7 billion, Industry Dive sister publication Payments Dive reported.

The company along with some of its payments rivals are also facing pressures selling to bank customers — FIS’ second-quarter results showed revenue growth slowing in the company’s banking division — as
U.S. banks have been impacted by higher interest rates and slowing economic growth, according to Payments Dive.

Kehoe, described by FIS as a “seasoned financial leader,” has faced economic presures at Walgreens.

In its fiscal quarter ended May 31, WBA did not meet its expectations, CEO Roz Brewer said during an earnings call. While the company reported sales grew in the quarter — increasing by 8.6% year-over-year to $35.4 billion — Brewer pointed to margin pressures that the company is facing in its full year outlook, stemming from changing consumer and category conditions and a “steeper drop off” in COVID-19 testing and vaccines since the public health emergency was declared over.

To help with the transition at FIS, Hoag will stay with the company as a non-executive officer through this year. His departure was first publically announced Tuesday, according to a company spokesperson.