Dive Brief:

• Bank of New York Mellon named Dermot McDonogh, who has worked for Goldman Sachs for over 25 years, as its next CFO, effective Feb. 1, according to a Wednesday company release.
• McDonogh, 57, will join BNY Mellon on Nov. 1. He succeeds Emily Portney, who has served as the bank’s CFO since 2020. Portney will continue to serve as BNY Mellon’s finance chief through Jan. 31, after which she will take a new role leading the bank’s treasury services, credit services, and clearance and collateral management businesses.
• McDonogh will receive an annual base salary of $600,000 as of the effective date, and his 2022 incentive award is established at a minimum of $5 million, comprised of 30% cash, 30% restricted stock, and 40% in performance share units, in accordance with the company’s executive compensation plan, according to a Securities and Exchange Commission (SEC) filing. He will also be entitled to buyout awards that, in aggregate, may not exceed $16.5 million. 

Dive Insight:

It’s not unusual for banks to pluck finance talent from their competitors. Portney, once an executive in BNY Mellon’s asset servicing division, stepped in as CFO in July 2020, when Wells Fargo hired her predecessor, Mike Santomassimo, to fill the San Francisco-based bank’s finance chief seat. And earlier this year BNY Mellon appointed Jennifer Barker, formerly an executive at JPMorgan, as CEO of its treasury services business. 

BNY Mellon’s new CFO choice adds another Goldman Sachs veteran to BNY Mellon’s C-suite. In March, the bank announced CEO Todd Gibbons would retire Aug. 31 and be succeeded by Robin Vince, a former Goldman exec who joined BNY Mellon in October 2020. The bank’s new leaders are taking the reins as executive optimism around the U.S. economy has plummeted to a 12-year low amid concerns about inflation, rising interest rates and the war in Ukraine, according to a JPMorgan survey. 

At Goldman Sachs, McDonogh most recently served as chief operating officer of the Europe, Middle East and Africa region and CEO of Goldman Sachs International Bank. As BNY Mellon’s CFO, McDonogh will be responsible for global financial strategy and financial operations, including finance functions, controllership, Treasury, the Chief Investment Office, capital management, tax, corporate development, investor relations and the business CFO teams, according to the release. 

"We are thrilled to welcome Dermot to BNY Mellon," Vince said in a statement. "Dermot has exceptional experience in finance and financial operations as well as leadership across global teams and dynamic international environments. BNY Mellon is a destination for top talent, and the addition of Dermot to our firm will further enhance the strength of our industry-leading team."

Vince also described Portney as a “trusted partner” and “versatile leader” who is “taking the helm of businesses to further accelerate the momentum of several of our key growth areas.”

She will continue to report to BNY Mellon’s CEO and serve as member of the executive committee, according to the release.