Boston Private CEO Clay Deutsch leaves at short notice

  • Push-out Score suggests push-out forces
  • After around eight years in the position
  • Anthony DeChellis taking over
  • Deutsch said 105 words

(exechange) — Boston, Massachusetts, November 5, 2018 — Clay Deutsch, chief executive of Boston Private, leaves. It is a change at short notice. As announced by Boston Private Financial Holdings, Inc. in a news release and in a regulatory filing published on Monday, November 5, 2018, Clayton G. (Clay) Deutsch leaves his post as Chief Executive Officer at the bank holding company after around eight years in the role, effective November 26, 2018.

Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CEOs who departed over the past 12 months was 9.2 years, according to data compiled by exechange.

Clay Deutsch’s duties will be taken over by Anthony DeChellis, a former President of OurCrowd Venture Capital.

The fact that Clay Deutsch’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.

“Planned succession”

Clay Deutsch’s imminent departure from the CEO post is explained as follows. Boston Private said: “The appointment is part of a planned succession process that began over a year ago.”

Precise information about Clay Deutsch’s future plans was not immediately available.

“Retiring”

Boston Private said: “Mr. DeChellis will succeed current CEO Clayton Deutsch, who will be retiring on November 26, 2018.”

Boston Private further said: “On November 2, 2018, Clayton G. Deutsch informed the Board of Directors of Boston Private Financial Holdings, Inc. … of his intent to retire as Chief Executive Officer and President of the Company and member of the Board of Directors of the Company and as Chief Executive Officer and member of the Board of Directors of Boston Private Bank & Trust Company, the Company’s wholly owned subsidiary …, effective November 26, 2018.”

Share price decline

The change follows a decline in the share price of Boston Private Financial Holdings, Inc. since June 2018.

Chaired by Stephen M. Waters

Boston Private Financial Holdings, Inc. is chaired by Stephen M. Waters.

Waters is Chairman of the Boards of the Company and the Bank, and is Managing Partner of Compass Partners Advisors LLP and its advisory and investment subsidiaries. He founded Compass Partners in 1996.

In the position of CEO since 2010

Deutsch is Chief Executive Officer and President of the Company, which he joined in August 2010, and is also the Chief Executive Officer of the Bank.

Deutsch is a member of the Company’s Leadership Team and has over 40 years of experience in the financial services industry.

He began his career in banking in the 1970s at Society Corporation, the predecessor to KeyCorp. Prior to joining the Company, he was a director at McKinsey & Company, which he joined in 1980, and served as Global Leader of that firm’s Merger Management Practice.

During his time at McKinsey, he developed deep experience working with many leading financial institutions, with a particular focus in the private banking, wealth advisory, and wealth management sectors, as he helped establish and build McKinsey’s Financial Services practice globally.

As a senior leader at McKinsey, Deutsch managed the Midwest complex of McKinsey offices including Chicago, Pittsburgh, Minneapolis, Cleveland and Detroit, and founded and led the Great Lakes Financial Services practice. Throughout his career with McKinsey, he consulted with financial services providers and other businesses on global strategy development, performance improvement, mergers and acquisitions strategy and corporate governance, among other areas.

Deutsch also served as Chairman of McKinsey’s Principal Review Committee, a member of the Director Review Committee, a long-time member of the Shareholders Council (McKinsey’s board of directors) and Chair of the Professional Standards Committee.

Deutsch serves as a member of the board of directors of each of the Company’s operating subsidiaries.

Deutsch will work closely with DeChellis and the Board of Directors to ensure a smooth transition and continued excellence in delivering Boston Private’s services to its clients across the country.

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Clay Deutsch’s imminent move.

The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.

Read the full story in the exechange report 46.2018 ($).