The Bank of New York Mellon Corporation ("BNY Mellon") has announced a new organizational and leadership structure, effective January 1, 2018.
The new organizational structure creates three new business units under our Investment Services segment: 1) Clearing, Markets and Client Management, 2) Asset Servicing, and 3) Issuer Services. The new units will combine businesses under common leadership that have natural connections and intersections with clients and will work closely together in developing comprehensive solutions. The new structure also allows for more client and business representation on the Executive Committee, the company's most senior management group.
Charlie Scharf, Chief Executive Officer, said, "The organizational and leadership changes announced today will position BNY Mellon for a heightened focus on serving our clients. The flatter hierarchy positions us to be more responsive to client needs, reduces complexity, increases efficiency and allows for faster decision-making. The business units will have increased accountability for delivering solutions for clients and driving financial performance. Overall, these changes will help drive sustainable, profitable growth and higher returns for our shareholders."
Thomas ("Todd") Gibbons has been appointed CEO of Clearing, Markets and Client Management which will include Pershing, Markets, Government Securities Services Corp., Treasury Services and Commercial Payments, Credit Services and Regional Management. This new group brings together all market and credit risk activities where we continue to have multiple opportunities to build more integrated solutions for our clients. Mr. Gibbons will remain on the Executive Committee.
On Gibbons' appointment, Scharf commented, "Todd has done an incredible job in his 9 years as CFO of the firm. His intelligence, knowledge of our businesses, and business acumen have made him an important part of our success. We see tremendous opportunities in the businesses which will now report to Todd and I'm thrilled to have Todd in a position to drive these opportunities for us."
Reporting to Gibbons will be Lisa Dolly who will continue to lead Pershing, Michelle Neal who will continue to lead Markets, and Brian Ruane who will continue to lead Government Securities Services Corp. – all will be members of the Executive Committee. Ian Stewart will continue to lead Treasury Services and Commercial Payments, Jeff Landau will continue to lead Credit Services, Adriano Koelle will remain Chairman of Latin America, and David Cruikshank will remain Chairman of APAC and a member of the Executive Committee.
Michael Santomassimo has been appointed Chief Financial Officer, succeeding Gibbons. Santomassimo has been CFO of Investment Services since July 2016. Prior to joining BNY Mellon, Santomassimo spent 11 years at JPMorgan Chase & Co. in a number of key finance leadership roles including as Chief Financial Officer, Banking, which included Investment Banking (Advisory and Equity & Debt Capital Markets), as well as Treasury Services. He also served as Chief Financial Officer, Technology & Operations, for the same division at JPMorgan Chase & Co., Chief Financial Officer of Worldwide Securities Services and CFO of the US Private Bank.
Commenting on Santomassimo's appointment, Scharf said, "Mike has done a terrific job since joining BNY Mellon. His extensive expertise in finance, accounting, strategy and financial reporting, as well as business and operational management in global institutional servicing and wealth management, will greatly contribute to BNY Mellon's development over the coming years. He has a strategic mindset and demonstrated success in building and leading finance teams which will be important in driving our business forward."
Hani Kablawi, currently Head of Investment Services, EMEA, will become CEO of Global Asset Servicing and Chairman of EMEA, and will join the Executive Committee.
Francis ("Frank") La Salla, currently CEO, Corporate Trust, will become CEO of Issuer Services (to include Corporate Trust and Depositary Receipts) and will join the Executive Committee.
Doug Shulman will continue to lead Operations, reporting to Mr. Scharf, and will remain on the Executive Committee.
The Executive Committee will also include a new Head of Digital, reporting to Scharf. As is the case with most businesses today, technology provides BNY Mellon with more ways than ever to provide advanced services to its clients and drive dramatically improved quality and efficiency. While there are many efforts across the company, BNY Mellon has an opportunity to be bolder in its approach and more consistent in its work in an aggressive pursuit of better solutions for its clients. The company, and ultimately its clients, will benefit from expert leadership with deep knowledge of the business application of data management and analytics, artificial intelligence and machine learning. This function will work with business leaders to understand how to best serve its clients in becoming a digitally focused organization.
As a consequence of the flatter organizational structure and business unit re-alignment, Brian Shea, CEO of Investment Services, will be leaving the company, effective December 31, 2017. Commenting on Shea, Scharf said, "Brian has contributed greatly to the success of Pershing over his 34-year career at the company. He has been instrumental in positioning Pershing as a market leader. In addition, he has been an important driver of the progress at BNY Mellon. The businesses he has led are stronger today due to his leadership. All of us thank Brian for his dedication to the firm over many years, and we wish him the best in his future endeavors."
Scharf concluded, "Our new organizational and leadership structure is the logical next step as we continue on our journey of driving improved results. We are focused on increasing our sense of urgency inside the company, ensuring we are delivering all of our capabilities to our clients, and using technology aggressively to achieve our goals. I am excited to welcome Mike, Hani, Frank, Lisa and Brian to our Executive Committee and look forward to working with them and the other members of the team."