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CFO shuffle continues as Webster, Eastern name new chief financial officers
New CFOs are set to join Webster Financial and Eastern Bankshares next month, both companies announced Monday. The appointments mark the latest CFO shuffle in the banking industry.
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Two regional banks in New England are set to welcome new chief financial officers next month, marking the latest chapter in the CFO shake-up underway in banking sector.
Webster Financial in Stamford, Conn., and Eastern Bankshares in Boston announced Monday that they have recruited experienced CFOs to replace their retiring chief financial officers.
In a press release, Webster said it has hired Neal Holland, the former chief financial officer of First Republic Bank and MUFG Union Bank, to succeed former CFO Glenn MacInnes, who plans to retire next month. Holland will report to CEO John Ciulla.
Separately, Eastern announced that David Rosato, who was previously CFO of Berkshire Hills Bancorp, will succeed retiring CFO James Fitzgerald on Aug. 1. In May, Berkshire Hills said Rosato would “step down to pursue other interests” and would remain with the company until June 14, while Berkshire transitioned his duties to new CFO Brett Brbovic.
Prior to joining Berkshire, Rosato was CFO of People’s United Financial in Bridgeport, Connecticut, when it was acquired by Buffalo, New York-based M&T Bank in early 2022. At Eastern, Rosato will report to Eastern CEO Denis Sheahan.
Eastern announced Rosato’s hiring in conjunction with the news that completed the acquisition of Cambridge Bancorpthe parent company of Cambridge Trust. Following the acquisition, Eastern has more than $25 billion in assets, the bank said in its statement.
Piper Sandler analyst Mark Fitzgibbon, who follows Webster and Eastern, was enthusiastic about both appointments, writing in a research note that Holland’s experience at larger banks will be “invaluable” to Webster and that Rosato is “an excellent addition to an already strong team” at Eastern.
Both hires come amid what observers say is a surge in CFO turnover at banks. What had been a slow burn has been accelerated by retirements, burnout, CEO changes, heightened regulatory pressure and profitability challenges stemming from higher interest rates.
Banks that are growing rapidly, especially those approaching the $100 billion asset threshold, may also be looking for CFOs with more banking experience, observers said.
Holland, who will report directly to Webster CEO John Ciulla, has also been named executive vice president of finance for Webster Bank and its $76.2 billion-asset parent company. In a press release announcing Holland’s hiring, Ciulla cited his “significant experience [working] in larger banking institutions.”
Holland, who has more than 20 years of strategic and financial experience, was CFO of San Francisco-based First Republic for about seven months. when it failed in April 2023.
Prior to this role, he spent over a decade at Tokyo-based banking giant Mitsubishi UFJ Financial Group in various finance roles. before taking on the role of CFO at MUFG Union Bankan American subsidiary of MUFG. MUFG Union was acquired by US Bancorp in December 2022.
At Webster, Holland will receive an annual salary of $650,000, according to a recent securities filing. He will also be eligible for an annual cash bonus award of 100% of his annual salary and an annual long-term incentive award of 190% of his annual salary, the filing said.
In addition, he will receive a one-time grant of $750,000 in Webster restricted stock with a three-year vesting schedule; a $200,000 cash signing bonus; and $600,000 in relocation benefits, the lawsuit said. Both the signing bonus and the relocation benefits are subject to reimbursement if Holland voluntarily terminates his position within the first year of his employment, the lawsuit said.
Webster also announced Monday that its board of directors has elected William Haas, a former deputy comptroller at the Office of the Comptroller of Currency, to its board. Haas, who is currently a senior adviser to the Midsize Bank Coalition of America, previously served as the OCC’s deputy comptroller for midsize bank supervision.
Eastern will pay Rosato a base salary of $550,000, the bank said in its own securities filing. Like Holland, Rosato will be eligible for an annual cash bonus award of 65% of his annual salary and a long-term incentive award of 100% of his salary, the filing said.
Rosato will receive a $200,000 cash signing bonus and, upon commencement of his employment, will receive a one-time award of restricted stock totaling $350,000, according to the filing.