The Depository Trust & Clearing Corporation (DTCC) says it is planning to appoint a chairman of the board role that is separate from the CEO position.
DTCC says the decision to separate the roles is the outcome of considerable discussion by its board of directors and executive management over the past 2 years, culminating in a governance review process completed in 2010.
Under the new organizational structure, the CEO will oversee DTCCs overall business strategy, business operations, systems, customer outreach and staff functions that pertain to the day-to-day running of the company, working in close collaboration with and reporting to the chairman. However, DTCCs risk management and compliance activities will report directly to the chairman. DTCC says the structure will provide for optimal checks and balances between the businesses and control functions, with separate and independent reporting lines to the board of directors.
Adding this important new leadership role builds upon DTCCs already strong corporate governance culture and provides a critical complement to Don Donahuewho continues as CEOand his leadership team at a time when the financial world is undergoing unprecedented change, says Art Certosimo, presiding director of DTCCs board of directors.
DTCC has engaged Korn/Ferry International to conduct the search for the new chairman and expects that it will be completed and the position filled early in 2011.