Bank of New York Mellon delivered surprise news late Wednesday with the announcement that Chairman and CEO Robert P. Kelly has left after disagreements over the way he has run the company. He has been replaced by Gerald L. Hassell, who has been president of the company since 1998.
According to Bloomberg, the departure of Kelly was by mutual agreement with the board of directors. While the statement did not specify the disagreements between Kelly and the board, the report mentioned talk that Kelly had placed blame for some of the company’s problems on other senior managers, which alienated some directors and top managers. He was also reported to have become difficult to work with.
BNY Mellon is the parent company of Pershing, which operates the largest clearing firm for independent broker-dealers and a custodial platform for RIAs, Pershing Advisor Solutions. At this year’s Pershing Insite conference, Kelly spoke of the challenges of running a bank in the current environment.
According to a New York Times report, Kelly was also thought to be not as engaged in the bank’s daily operations as board members wished. It also said the blowup between Kelly and the board had been looming for a while.