The notion that State Street would recruit its next CEO from outside the bank appears to have been laid to rest with the news at yesterday’s AGM that Jay Hooley, long the heir apparent to incumbent CEO Ron Logue, has become president and chief operating officer.
Hooley, 51, takes both titles from Logue, who remains the company’s chairman and chief executive. However, the bank says Logue, who is now 62, is not planning to retire soon.
In April, State Street did name an outsider, Scott Powers, to head State Street Global Advisors (SSgA), its investment management arm, after the previous chief Bill Hunt stepped down after investments tied to sub-prime mortgages turned sour.
Hooley already has oversight of information technology and investment research and trading operations at State Street.
At the AGM, the bank did not mention the impact of the credit crunch, which has affected the share price, or any potential losses in conduits and other special investment vehicles that hold assets at the centre of the current crisis.
CEO Ron Logue did say the acquisition of Investors Bank, which State Street acquired last year for $4.5 billion, was being integrated expeditiously. The bank claims to have retained 29 of Investors Bank’s top 30 customers, and 91 percent of revenue. So far it has eliminated $170 million in annual costs, taking it towards an eventual target of $365 million in savings.
Hooley, age 51, is currently responsible for all of State Street’s asset servicing activities worldwide. “Jay is a proven leader with a strong knowledge of our industry and the trends shaping its future,” said Logue in a statement. “He has made a significant impact to our past success and I have no doubt as president of State Street he will have an equally profound impact on our future. His vision and in-depth understanding of our businesses will ensure that anticipating and meeting our customers’ needs always remain at the forefront of what we do.”
Since joining State Street in 1986, Hooley has held a number of positions with the company. After leading the company’s US mutual fund sales organization, Hooley joined State Street’s shareholder servicing joint venture with Kansas City-based DST systems. From 1988 to 1990, he served as president and chief executive officer of National Financial Data Services and went on to become president and chief executive officer of Boston Financial Data Services from 1990 to 2000. During this time, he oversaw the growth of the core domestic services business and was responsible for the creation of International Financial Data Services (IFDS), extending the joint venture’s shareholder servicing offering to Europe and Canada. He returned to State Street in 2000 to manage its global investment servicing business and assumed his current responsibilities in 2004. Hooley, a member of State Street’s Operating Group, the company’s most senior strategy and policy-making team, was named vice chairman of State Street in 2006.
“This is a time of tremendous opportunity within our industry although one that is coupled with heightened complexity and challenges for our customers,” said Hooley in astatement. “As president and COO I am committed to continuing to leverage the considerable advantages we have established in terms of global reach, scale and investment in technology and innovation to benefit all of our constituencies.”
Hooley is an active member of a number of community organizations. He is a director on the board of the Boys & Girls Clubs of Boston, a trustee of The Prince of Wales International Business Leaders Forum (IBLF) and a member of The Boston Club’s Corporate Advisory Board, which is focused on identifying and recommending qualified women candidates for openings on corporate boards.