Dennis J. Dirks, chief operating officer of the Depository Trust & Clearing Corporation (DTCC), has announced that he will retire at the end of April.
In addition to being COO of DTCC and a member of the Board of Directors, Dirks also serves as president of The Depository Trust Company (DTC), National Securities Clearing Corporation (NSCC) and as CEO of Fixed Income Clearing Corporation (FICC), which are all wholly owned subsidiaries of DTCC.
He will be retiring from those posts as well.
Donald F. Donahue has been elected by the DTCC Board at its April meeting to assume the role of chief operating officer from Dirks, which includes appointment to the Board of Directors. Donahue will also assume the other titles and responsibilities held by Dirks for the DTC and NSCC subsidiaries.
Donahue, 52, is a 17-year veteran of DTCC and previously, DTC.
As DTCC managing director for Technology, Strategy and Product Development since 1999, he has been the architect of firm’s product development, technology and business continuity planning efforts. Donahue has also played a pivotal role with the CEO, COO and the Board in completing a strategic assessment of new business directions for DTCC and the introduction of major initiatives.
Dirks, 55, indicated that a health issue two year ago, from which he’s since fully recovered, was a wake-up call and changed his priorities. He’s expressed a desire to spend more quality time with his family, on traveling and pursuing other interests.
“Dennis Dirks has had a 31-year tenure of unparalleled service to the industry,” says CEO Jill Considine. “If the industry has enjoyed a high degree of confidence in the certainty, reliability and quality of support provided by this organization, it is a testament to Dennis’ exceptional leadership and numerous contributions over the years.”
“His decision to retire is bittersweet on a very personal level,” Considine pointed out. “Dennis has been an invaluable partner through the launching of DTCC, helping to integrate a depository and several clearing corporations into one cohesive organization without any disruption in service to our customers and creating a culture and management team that ensures DTCC’s continuing leadership role. I will miss his integrity and clear grasp of complex issues. At the same time, knowing Dennis’ family, I’m aware of how excited he is about having time with them and especially his new grandchild. This was a life decision and he’s more than entitled, after such a long and distinguished career.”
“We always hear the expression about wanting to make a difference,” adds Robert Silver, a member of DTCC’s Board and president, UBS PaineWebber Services. “Well, Dennis Dirks has made a career of it. Whether it was helping the industry solve the paperwork crisis of the 1970s through immobilization and automated book-entry of securities movements, creating efficiency by absorbing the depository functions of regional exchanges as they exited this business, automating settlement and the processing of commercial paper and cross-border trades, shortening the settlement cycle from T+5 to T+3, or moving the industry to same-day funds settlement, the list of changes he helped lead for the industry are historic.”
“In speaking for the Board–and for the industry, we thank Dennis for his talent, dedication and uncompromising commitment to participants over the years. He was always there for us, whenever we needed him. We wish him well as he makes this transition and hope he’ll look back with pride and great personal satisfaction on his achievements.”
“Working with Jill over the past three years has been terrific,” says Dirks. “We’ve been able to address a number of important priorities for the industry and to prepare DTCC for the next generation of leaders who will follow us.”
“I am grateful for the opportunities that I’ve had over the years to work with so many talented people at DTCC and to serve an industry that I admire so very much. I’ve mulled this decision over for some time and I decided that this was the right time for making this transition.”
“I believe one of the key reasons Dennis felt so comfortable in making his decision was our shared confidence, and the confidence of the Board, in Don Donahue,” said Considine. “Don is a proven and highly regarded executive at DTCC by senior executives within and outside the financial services industry.”
“His operational knowledge, command of technology and strategic thinking has played an increasingly important role over the past three years. Don not only assures an orderly and seamless management transition for DTCC, he provides a level of leadership that will foster both continuity and innovation.”
Dirks began his career at The Depository Trust Company (DTC) more than 31 years ago as a Systems Analyst. After several years in positions responsible for systems-related activities and Participant Services, he became vice president of Operations in 1980, senior vice president in 1986 and executive vice president in 1992.
In 1994, he assumed responsibility for Information Services which led technology development for DTC. He was named senior executive vice president and chief operating officer for DTC in 1997 and was elected president in 1998.
Dirks was named COO for DTCC, following the industry’s move to integrate the activities of DTC and NSCC in 1999 under one umbrella organization.
FICC was integrated under DTCC in 2003.
Dirks received a B.A. with honors in English Literature from Manhattan College in 1969, and received an M.B.A. from Bernard Baruch College in 1974. He also attended the management development program at the Harvard Business School in 1980.
Donald F. Donahue joined the depository in 1986 after 14 years in the municipal securities industry. During his time at DTC, he has held positions in Participant Services/Planning and in several Operations areas. Donahue headed DTC’s Operations Division from 1995 until April 1997, when he assumed primary responsibility for DTC’s Information Services Division and became DTC’s chief information officer.
Prior to joining DTC, Donahue worked for five years with Barr Brothers & Co. Inc., a brokerage firm specializing in municipal securities. He worked for the Municipal Securities Rulemaking Board from1977 to 1985, first as assistant executive director and then as deputy executive director. From 1985 to 1986 he was president of two affiliated companies, which developed and marketed secondary market credit enhancements for municipal securities.
Since the integration of the DTC and NSCC, Donahue has been managing director for the Customer Marketing and Development Group, responsible for developing and marketing the service lines offered by DTCC’s subsidiaries. This role includes strategic planning, product development, IT applications development and technology infrastructure support and telecommunications. He has a B.A. degree in History from Columbia University.