US - Ronald Logue will retire from his position as State Street's chairman and chief executive next year and will be replaced by president and chief operating officer Jay Hooley.
In a statement today, State Street said Logue will step down on March 1, 2010, but will continue to serve as non-executive chairman until January 1, 2011.
In 2007, he led the bank in completing its largest acquisition when it bought Investors Bank and Trust Co. Since becoming CEO in 2004, Logue has focused on developing the US bank into a more global company.
He said: "Despite significant headwinds over the past 18 months, we have emerged over the course of the last five years as a stronger, more global organization."
During Logue's time at the helm, the firm has reported a five-year compound annual growth rate of 18.9%, while non-US revenues have grown to 35% of overall revenues.
Hooley is taking over a firm that has been mired in controversy since the start of the credit crunch.
This week, the California attorney general announced a law suit against the firm for allegedly overcharging the California State Teachers' Retirement System and the California Public Employees Retirement System on their foreign currency trades. (Global Pensions; October 20, 2009)
And in 2007, the firm came under attack from investors who claimed it had misrepresented the level of risk in some of its bond funds, particularly the Limited Duration Bond Fund, run by State Street Global Advisors (SSgA).
Earlier this year, the firm said the US$625m legal reserve it had set aside to counter those and other accusations was running dry. (Global Pensions; August 11, 2009)
Hooley said: "I am ready and enthusiastic to lead State Street. (The firm) continues to be well positioned relative to attractive long-term growth trends in the global financial markets. We have an excellent management team, a strong capital position, extensive customer relationships and a culture of customer focus and innovation, all of which will continue to serve us well and drive State Street's growth into the future."
This week, State Street reported SSgA's assets under management hit $1.75trn in the third quarter, up 11% from the last quarter, and up 2.9% from a year earlier.
Parent company State Street Corp. reported third quarter earnings of $1.04 per common share on revenue of $2.24bn versus $1.09 per share on revenue of $2.8bn a year earlier.
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