Bank of New York Mellon Corp. named President Gerald L. Hassell to the additional titles of chairman and chief executive, succeeding Robert P. Kelly, who is stepping down due to "differences in approach to managing the company."
Shares fell 2.7% to $20.11 to $20.11 in after-hours trading.
The appointment of Hassell, effective immediately, came after a mutual agreement was reached with BNY Mellon's board. According to lead director Wesley W. von Schack, Hassell is "ideally positioned to guide BNY Mellon through the next phase of its growth and to bring it to its full potential."
Kelly had served as the company's chairman and CEO since July 2007.
The shakeup comes after the asset manager and securities adviser earlier this month said it would cut its global work force by roughly 3%, a move that comes as some of the world's largest financial firms continue to struggle as macroeconomic worries accelerate around the globe.
Over the course of his more than three-decade career at BNY Mellon and its predecessor company, The Bank of New York, Hassell has led "nearly every major division of the company," von Schack said.
Last month, BNY Mellon reported its second-quarter earnings improved 12%, helped by an 18% increase in fee revenue. Still, expense growth remained high and Kelly at that time signaled that the company would take additional actions to reduce expenses.
John Kell is a reporter for Dow Jones Newswires, where this story originally appeared. Write to him here.