Bank of New York Mellon Corp. (NYSE: BK) said on Monday that it had hired Charles W. Scharf, the former top executive of Visa and a veteran banker with experience at Citigroup, Bank One and JPMorgan Chase, as its new chief executive.
Scharf, who led Visa from October 2012 to December 2016, will join the bank as chief executive immediately and assume the added role of chairman on January 1, Bank of New York Mellon said.
Gerald L. Hassell will continue to serve as chairman until he retires at the end of December, the bank said. Mr. Hassell has been Bank of New York Mellon’s chairman and chief executive since 2011.
“Under Charlie’s leadership, Visa transformed its technology platform by opening access to its network and capabilities, partnered with the world’s leading technology companies to drive new payment experiences, introduced new technologies to improve payment system security and built a world-class management team,” Mr. Hassell said in a news release. “Charlie is ideally suited to lead BNY Mellon through the next phase of growth.”
BNY Mellon had $30.6 trillion in assets under custody and administration at the end of March. The bank's massive platform is a key part of the plumbing that keeps global financial markets flowing. Besides safeguarding the stocks and bonds of large institutions, the bank calculates mutual fund prices, trades foreign currencies and facilitates securities lending to enable short selling by hedge funds, for example.
Scharf said he will focus on boosting the custody bank's organic growth, but he would consider acquisitions if they make strategic sense. "The first priority is growing the company organically," Scharf told Reuters. "We already are in places that have tremendous amounts of opportunity."
BNY Mellon shares were up 2 percent late Monday morning on Scharf's appointment as CEO. The stock rose about 145 percent during the last five years of Hassell's tenure, which began in late August 2011. The S&P 500 Index is up 81 percent over the past five years.