Alight Taps 'Growth' CEO Amid Stock Collapse and Operational Hurdles

CHICAGO, IL – November 24, 2025 – Alight, Inc. has announced a major leadership overhaul, appointing Rohit Verma as its next Chief Executive Officer in a move the company frames as a strategic pivot toward growth. The transition, effective January 1, 2026, will see current CEO Dave Guilmette step down after a tenure credited with shoring up the company’s operational foundations. Yet, this forward-looking announcement comes against a backdrop of severe financial distress, mounting legal pressures, and a stock performance that has eroded billions in shareholder value, raising critical questions about the path ahead.

Verma, currently the CEO of claims management firm Crawford & Company, is being brought in with a clear mandate. Russell P. Fradin, Chair of Alight’s Board, stated Verma “is the right leader to help Alight deliver the best benefit services and outcomes to clients” and advance the company’s “return to growth.” However, the reality confronting the incoming chief is far more complex than a simple growth story. The benefits administration giant is navigating a perfect storm of market skepticism, intense competition, and significant internal challenges that will test Verma’s leadership long before he officially takes the helm.

A Mandate Forged in Financial Fire

The board's emphasis on growth is a direct response to Alight's harrowing financial performance. Over the past year, the company's stock (NYSE: ALIT) has plummeted by a staggering 74.5%, hovering near its 52-week low. An investor who put $1,000 into Alight’s IPO in July 2021 would be left with just over $200 today. This steep decline reflects deep-seated investor concerns that recent earnings reports have only amplified.

In its third-quarter 2025 results, Alight reported a 4.0% decrease in revenue to $533 million, missing analyst expectations. More alarmingly, the company posted a net loss of over $1 billion. This was driven primarily by a colossal $1.34 billion non-cash goodwill impairment charge—an accounting measure that signals the company believes the value of its assets has significantly diminished. While the board thanked outgoing CEO Dave Guilmette for strengthening “delivery operations, enhance our product innovations, and improve our liquidity and margins,” these improvements have failed to translate into investor confidence. Wall Street has responded by slashing price targets, with analysts at UBS Group and Wedbush cutting their outlooks and citing diminished confidence in the company's trajectory.

This financial turmoil provides the stark context for Verma’s appointment. The board is not just looking for a leader; it is searching for a savior who can reverse the company’s fortunes and convince the market that Alight’s future is brighter than its recent past.

The New Helmsman’s Double-Edged Record

Rohit Verma comes to Alight with a compelling narrative. The press release highlights his tenure at Crawford & Company, where he is credited with leading the organization to “four consecutive years of record revenue growth.” This top-line success is precisely what Alight’s board and beleaguered shareholders want to hear. Verma’s background in finance, strategy, and M&A, honed at firms like McKinsey & Company and Deloitte, further burnishes his credentials as a transformation-focused executive.

However, a deeper look at Crawford & Company’s performance under Verma reveals a more nuanced picture. While revenue did indeed grow consistently, this growth did not always translate into superior shareholder returns. From 2022 to 2024, Crawford’s total shareholder return significantly underperformed its S&P Property-Casualty peer index. Furthermore, a key long-term incentive plan for executives, tied to performance share units, paid out at 0% for the 2022-2024 cycle because it fell below the specified threshold. This suggests that while Verma is adept at expanding a company's sales, creating commensurate value for shareholders has proven more challenging. The question for Alight is whether Verma can deliver not just the revenue growth he is known for, but the profitable, value-creating growth the company desperately needs.

Navigating a Gauntlet of Operational Headwinds

Beyond the financial and competitive pressures, Verma will inherit a company grappling with significant operational and legal issues that threaten its reputation as a trusted steward of sensitive employee data. Alight, which manages benefits for 35 million people, has been embroiled in multiple data security incidents and subsequent regulatory scrutiny.

Since 2019, the U.S. Department of Labor (DOL) has been investigating the company over cybersecurity breaches that led to unauthorized distributions from retirement plan accounts. The DOL alleged Alight failed to promptly notify clients of the breaches or restore the stolen funds, leading to federal court orders compelling the company to comply with subpoenas. These investigations highlight systemic weaknesses in the very infrastructure that is supposed to protect the financial wellbeing of millions.

These security lapses have also triggered costly litigation. Alight is currently defending itself in a lawsuit brought by a former Colgate-Palmolive employee whose 401(k) was drained of $750,000 by a cyber thief. The company has argued it is not a fiduciary and therefore not liable, a position that could have wide-ranging implications for the entire benefits administration industry. Compounding these issues is a class-action lawsuit filed in late 2023 alleging the company failed to properly compensate its call center agents for all hours worked, pointing to potential internal morale and labor practice challenges. These legal battles represent a significant distraction and financial drain, diverting resources that could otherwise be invested in innovation and growth.

The Competitive Battlefield of HR Tech

Alight’s internal struggles are unfolding within one of the most dynamic and competitive sectors in technology. The global benefits administration market is expanding rapidly, driven by the adoption of AI, the demand for integrated HR systems, and an increasing focus on employee wellness. However, Alight is losing ground to its rivals. In 2024, the company ranked fifth among benefits administration software vendors and was the only one in the top ten to post negative year-over-year revenue growth for its applications.

Meanwhile, competitors like Workday and ADP are thriving. Workday reported 20% subscription revenue growth in a recent quarter, heavily touting its advancements in AI and machine learning. Oracle is similarly embedding AI agents across its human capital management suite. For Alight to compete, it must not only fix its foundational issues but also accelerate its technological evolution. While the company has made its own investments in AI, Verma will need to ensure these initiatives translate into a market-leading platform that can win back market share and justify premium pricing.

The long, 13-month transition period before Verma takes office leaves Alight in a prolonged state of uncertainty. His challenge is immense: he must restore investor faith, overhaul critical security and operational protocols, and out-innovate aggressive competitors, all while managing a culture potentially strained by legal and financial pressures. His success or failure will determine whether Alight can build a truly connected future for its clients or if it will become a casualty of its own complex legacy.