BNY Mellon's Scharf Makes First Moves to Reshape Bank

Corrected
  • Brian Shea, head of investment services, to exit end of year
  • Santomassimo named finance chief as executives change roles

Charles Scharf, Bank of New York Mellon Corp.’s new chief executive officer, made his first moves to reshape the company by reorganizing its biggest business, investment services, and announcing the departure of Brian Shea, who headed the unit.

Shea will leave the company Dec. 31, BNY Mellon said Monday in a statement.

Scharf, 52, who joined BNY Mellon in July, is a former CEO of Visa Inc. He said that to create greater efficiency in investment services, he’s breaking the unit into three pieces: clearing, markets and client management, asset servicing and issuer services.

“The flatter hierarchy positions us to be more responsive to client needs,” Scharf said in the statement.

Thomas Gibbons, currently the chief financial officer, was named CEO of clearing, markets and client management. Michael Santomassimo succeeds Gibbons as CFO.

BNY Mellon managed $1.8 trillion and had $32.2 trillion in custody or administrative assets as of Sept. 30.

Scharf succeed Gerald Hassell, who focused mainly on cutting costs by shrinking the real estate the bank occupies and by streamlining technology operations. Scharf, who helped turn Visa into a tech-savvy competitor, is expected to boost BNY Mellon’s tech offerings and look for ways to generate faster revenue growth. Total revenue grew 2 percent in the third quarter from the same period a year earlier.

Earlier Monday, the New York-based bank said it is combining three of its money-management units into a larger business that will oversee $560 billion. The units, Mellon Capital Management, Standish Mellon Asset Management and the Boston Company, currently operate as independent boutiques. Des Mac Intyre will head the business that will offer multiasset products using passive and active strategies.

BNY Mellon shares are up 7.7 percent this year, compared with a gain of 17 percent for the S&P index of 18 asset managers and custody banks.

Read more: BNY Mellon creates $560 billion asset manager by merging units

(Corrects Shea’s title in first paragraph.)
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