Bank of New York Mellon hired a Goldman Sachs veteran as its next finance chief, a move that comes after the bank appointed a new chief executive earlier this year.
BNY Mellon on 6 July named Dermot McDonogh as chief financial officer, succeeding Emily Portney, who is transitioning to a new role at the New York-based custody bank.
McDonogh, who is set to join BNY Mellon on 1 November, will take the reins as CFO on 1 February 2023. He has worked at Goldman Sachs for over 25 years, including most recently as chief operating officer for the Europe, Middle East and Africa region and chief executive of the company’s international bank. Before that, McDonogh served as Goldman’s international controller.
BNY Mellon in March named former Goldman executive Robin Vince as its next chief executive officer, succeeding Todd Gibbons, who plans to step down on 31 August after about three years in the role. Vince, who is currently serving as president and CEO-elect, retired from Goldman in 2019 as the bank’s chief risk officer.
Portney, who has served as BNY Mellon’s CFO for two years, is set to take on a new role leading the bank’s treasury and credit services, as well as its clearance and collateral management businesses. She will continue to report to the company’s CEO and will remain on the executive committee. Portney previously worked in the bank’s asset servicing business, where she led the Americas division, as well as the business’s client management, sales and service teams globally.
McDonogh will step into the CFO role as the bank confronts new challenges. The Securities and Exchange Commission in May fined BNY Mellon’s investment management arm $1.5m for misleading claims it made about funds that use environmental, social and governance criteria to pick stocks. The bank neither admitted to nor denied the claims.
The bank in March ceased new banking business in Russia and suspended purchases of Russian securities due to the country’s war in Ukraine. BNY Mellon during the first quarter took an $88m hit to revenue stemming from those moves. It earned $699m during the quarter, down 19% from a year earlier.
Recent declines in the stock market have put pressure on the fee revenue that the bank generates from its clients, many of whom are asset managers, said Mike Brown, managing director at investment firm Keefe, Bruyette & Woods. Competitors are facing similar challenges, he said.
As CFO, McDonogh will be responsible for BNY Mellon’s global financial strategy and operations, including the company’s finance function, controllership, treasury, chief investment office and capital management divisions.
Vince praised McDonogh’s finance skills and his experience leading global teams in a press release. McDonogh wasn’t available for an interview on 6 July, a BNY Mellon spokesman said.
McDonogh is set to receive an annual base salary of $600,000 as well as a minimum incentive award of $5m, made up of 30% cash, 30% restricted stock and the remainder in performance share units, BNY Mellon said in a filing with securities regulators. He will also be eligible for buyout awards worth a maximum of $16.5m, made up of a mix of cash and restricted stock, the filing said.
Write to Kristin Broughton at [email protected]
This article was published by The Wall Street Journal, part of Dow Jones