Square’s Board of Directors Shakes Up With Magic Johnson’s Departure

MAD TV, back in its heyday, had a fondness for mocking Magic Johnson’s frequent television appearances, with the Kwanzaa special being canceled after about four minutes of operation.

Johnson’s appearance on the board of directors for Square has likewise been shut down, and a new arrival is set to hopefully invigorate the board in the face of new operations and some fairly substantial losses.

Unlike the MAD TV parodies, however, Johnson seems to not have been canceled, but rather self-terminated.

Citing a set of “other projects” that require his time, Johnson resigned from Square’s board. Johnson noted that Square already had “an outstanding board,” and that, with such leadership in hand, Square “…will continue to have an immeasurable impact on this world.” Johnson has less than a year on the board, which made his departure somewhat of a surprise.

Replacing Johnson was Lord Paul Deighton, former Commercial Secretary of the Treasury for the United Kingdom, as well as a partner at Goldman Sachs, with 27 years’ experience in banking all told.

Deighton noted that “empowering and investing in businesses and communities has always been at the core of my work,” and that Square was right in line with this concept.

These kinds of events happen fairly routinely, and with Square in the midst of a growth pattern, it clearly needs a board that’s fully engaged.

Johnson’s other commitments may well have prevented that, and it’s good for both him and for Square that he saw that potential conflict coming and worked accordingly.

With some recent losses taking place for square—going from $48 million in 2015’s first quarter to $96.8 million in 2016’s—it’s a likely unnerving affair.

Square has responded to this with rapid expansion, stepping into online lending and cash advances, a route that may help drive future growth.

Still, with the board in a bit of turmoil, and losses widening, this move may be just what’s needed to help refocus Square on a better future, greater profitability, and improved shareholder value.

Diversification and new services can be valuable, and Square’s board changes may push the company forward into its new ventures.