BNY Mellon Names Goldman Sachs Veteran as Its Next Finance Chief

Financial institution of New York Mellon Corp.

hired a

Goldman Sachs

Team Inc. veteran as its upcoming finance main, a go that will come right after the financial institution appointed a new chief executive before this calendar year.

BNY Mellon on Wednesday named

Dermot McDonogh

as chief economic officer, succeeding

Emily Portney,

who is transitioning to a new role at the New York-based custody financial institution.

Dermot McDonogh, the freshly named CFO of BNY Mellon.



Image:

BNY Mellon

Mr. McDonogh, who is set to join BNY Mellon on Nov. 1, will consider the reins as CFO on Feb. 1, 2023. He has labored at Goldman Sachs for in excess of 25 many years, which include most not too long ago as chief running officer for the Europe, Center East and Africa location and chief executive of the company’s worldwide lender. Prior to that, Mr. McDonogh served as Goldman’s intercontinental controller.

BNY Mellon in March named previous Goldman executive

Robin Vince

as its following chief govt officer, succeeding Todd Gibbons, who ideas to move down on Aug. 31 right after about a few several years in the job. Mr. Vince, who is at the moment serving as president and CEO-elect, retired from Goldman in 2019 as the bank’s main threat officer.

Ms. Portney, who has served as BNY Mellon’s CFO for two years, is set to just take on a new function major the bank’s treasury and credit expert services, as effectively as its clearance and collateral management corporations. She will keep on to report to the company’s CEO and will stay on the govt committee. Ms. Portney beforehand labored in the bank’s asset servicing business enterprise, in which she led the Americas division, as perfectly as the business’s shopper management, income and company teams globally.

Mr. McDonogh will stage into the CFO function as the bank confronts new troubles. The Securities and Exchange Commission in May well fined BNY Mellon’s financial investment management arm $1.5 million for misleading claims it made about cash that use environmental, social and governance conditions to choose stocks. The lender neither admitted to nor denied the claims.

The financial institution in March ceased new banking business in Russia and suspended buys of Russian securities because of to the country’s war in Ukraine. BNY Mellon throughout the initial quarter took an $88 million strike to income stemming from those people moves. It gained $699 million through the quarter, down 19% from a year earlier.

Latest declines in the stock current market have set stress on the charge income that the financial institution generates from its purchasers, lots of of whom are asset professionals, claimed

Mike Brown,

controlling director at financial commitment firm Keefe, Bruyette & Woods. Competitors are struggling with comparable troubles, he mentioned.

As CFO, Mr. McDonogh will be liable for BNY Mellon’s global financial approach and operations, such as the company’s finance function, controllership, treasury, main financial commitment business office and capital administration divisions.

Mr. Vince praised Mr. McDonogh’s finance abilities and his experience primary international teams in a push launch. Mr. McDonogh wasn’t offered for an interview on Wednesday, a BNY Mellon spokesman mentioned.

Mr. McDonogh is set to acquire an annual base income of $600,000 as nicely as a minimal incentive award of $5 million, built up of 30% funds, 30% restricted stock and the remainder in general performance share units, BNY Mellon stated in a filing with securities regulators. He will also be eligible for buyout awards well worth a utmost of $16.5 million, designed up of a combine of money and restricted stock, the submitting reported.

Generate to Kristin Broughton at [email protected]

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