Dive Brief:
- BMO Capital Markets CEO Dan Barclay is retiring, the Toronto-based lender announced Tuesday.
- Alan Tannenbaum, BMO Capital Markets’ global head of investment and corporate banking, will take over as CEO on Nov. 1 — at which point Barclay will transition to a senior adviser role, the bank said.
- Brad Chapin, BMO Capital Markets’ head of global corporate banking, will serve as interim global head of investment and corporate banking, the bank said.
Dive Insight:
The executive shuffle comes at a challenging time for BMO’s capital markets division, which accounts for roughly 20% of the bank’s profit, according to Reuters.
The unit cut roughly 100 positions, or 3.5% of its staff, beginning in June.
“We are focused on managing expenses dynamically, growing revenue and improving our relative efficiency ratio,” BMO spokesperson Kelly Hechler told Bloomberg and The Globe and Mail at the time.
The downsizing came in response to a 42% industrywide slump in dealmaking throughout the first half of 2023, compared with a year earlier. Nevertheless, BMO’s capital markets division in August reported quarterly net income of C$310 million ($228 million), an 18% increase from the same span in 2022, as higher revenue in global markets and investment and corporate banking offset higher expenses and a jump in loan-loss provisions, according to Bloomberg.
"Alan's appointment represents a strong handoff of a high-performing and high-potential business, which plays a critical role in BMO's portfolio," Darryl White, BMO’s CEO, said in a statement Tuesday. "Alan is well-positioned to capture new growth opportunities for BMO Capital Markets and enable the growth aspirations of our clients across the bank.”
Tannenbaum will join BMO's executive committee with his new role. He began at BMO Capital Markets in 2010, serving as a managing director before being elevated to head of investment and corporate banking in 2021. He also worked as a managing director at Lehman Brothers from 1998 to 2006, according to his LinkedIn profile.
The investment and corporate banking role appears to be a springboard at BMO Capital Markets: Barclay, too, served in that capacity before ascending to CEO in 2018. He joined BMO in 2003 after stints at Scotiabank and Morgan Stanley, according to his LinkedIn profile.
"Dan's 32-year track record of client service, ethical leadership, innovation breakthroughs, and the strategic counsel he has contributed to BMO's senior leadership team have been key to the progress BMO is making for our clients,” White said Tuesday. “Dan has helped position BMO as our clients' lead partner in the transition to a net zero world and established BMO as a global leader in sustainable finance, while passionately advocating for an energy transition that's both sustainable for our planet and for the communities we serve.”
