Rocket names fintech executive Varun Krishna CEO

Rocket Cos. announced a major leadership transition on Monday with the appointment of Varun Krishna as CEO, while longtime executive Bob Walters plans to retire.

Krishna takes over the helm of Detroit-based Rocket from interim CEO Bill Emerson who had held the role since June. With the appointment, Emerson, also a member of the company's board of directors, will become president and chief operating officer of the company, taking over from Walters. A veteran of the company since 1997, Walters announced his plans to retire, effective Sept 5.

In a dual leadership appointment, Krishna will also take on Walters' other executive role as CEO at the company's Rocket Mortgage unit. A consumer fintech veteran, Krishna comes to Rocket after several years in executive leadership at Intuit Inc., where he was general manager of the consumer group responsible for its suite of tax products.  Prior to joining Intuit, Krishna served as senior director of product at PayPal, where he helped manage the fintech's global consumer offerings.

"Throughout his career, he has delivered innovative, technology-driven client experiences for complex personal transactions in large, fragmented markets," said Dan Gilbert, founder and chairman of Rocket Cos. "Varun's experience aligns perfectly with Rocket's vision, making him the ideal person to drive growth, strong performance and operational excellence at Rocket. 

The Rocket board's decision to add Krishna is further evidence of the organization's strategy to brand itself as a technology-based business, according to some analysts. 

"We believe this further confirms that Rocket views itself as a technology company focused on fundamentally changing how mortgages are originated," wrote Bose George, Alexander Bond, and Thomas McJoynt-Griffith of Keefe, Bruyette & Woods in a research note on Monday. "The company has been successful in doing so in the refi market, and continues to work on developing solutions for the purchase market."

In the past year, Rocket Mortgage has developed new tech-centric partnerships in efforts to increase origination opportunities. The parent company has also touted other initiatives among its subsidiaries with hopes to potentially set up a pipeline of future customers for its mortgage business.

Krishna officially ascends to the top position at Rocket Cos. on Sept 5, the same day as Walters' retirement. Walters had led Rocket Mortgage since early 2022, while also holding other leadership positions throughout the company during his career.

"His legacy as a leader and an expert in Capital Markets will leave a lasting impact on Rocket Mortgage," Gilbert said.

The search for a new CEO at Rocket began earlier this year after former leader Jay Farner said he would leave the company in June after 27 years at the company. At the time, some analysts said it could mark a pivot in strategy for the company, with further management moves possible down the road. 

Markets greeted the announcement Monday morning with a 2.5% boost in the company's stock value. After opening the day at $10.93, shares of Rocket Cos. jumped to $11.22 within the first 90 minutes before retreating.