Bessemer Trust has acted to maintain continuity for its wealthiest customers by promoting an insider, John A. Hilton Jr., to be president and chief executive officer, effective Oct. 1.
Six months ago, Mr. Hilton, 55, was promoted to chief operating officer, and Bessemer executives acknowledged then that he was next in line to run the company.
Mr. Hilton said he knew when he was promoted to chief operating officer that it meant he was the heir to the presidency because Bessemer has historically used the post to prepare chief executive officers. He said he had no idea it would happen so quickly, though.
He succeeds Frank E. Helsom, 59, who was named president after Donald J. Herrema left in October 2000 to "pursue other interests."
"I knew I was going to get promoted, but it happened quicker than any of us expected," Mr. Hilton said. "I knew that I was going to be promoted when Frank was comfortable, when I was comfortable, and when the board was comfortable. It all just happened fast."
Executives at Bessemer said Mr. Helsom knew his task was to smooth the transition to a successor. He will remain a senior adviser and focus on clients and client issues that he had dealt with previously.
"Mr. Helsom assumed the presidency on an interim basis, and he understood his role with the firm was a transitional one," said Karen Putnam, Bessemer's director of philanthropic assets. "Management here was far-sighted, and carefully outlined their course, and made sure that everyone was on board and informed."
Mr. Hilton joined Bessemer in 1993 to open and manage an office in Chicago. In 2000, he moved to New York, where he ran Bessemer's headquarters and its central and western regions. In March, he was named chief operating officer.
By promoting from within, Mr. Hilton said, Bessemer can maintain its delivery of the best services to the high-net-worth market. The action also sends a strong message to Bessemer's employees, he said.
"Whenever we have an opportunity as a firm to promote from within we are going to do that from the most senior job in the firm on down," he said. "We want to create the perception that employees have career opportunities here. This creates a really unique culture."
Mr. Hilton said Bessemer, which manages $36 billion of assets, has developed products and extended its distribution during Mr. Helsom's tenure. In November 2000, Bessemer doubled its account minimum to $10 million so that it could focus on the ultra-affluent. Its average account balance is now $23 million.
In June 2001, the company opened a Dallas office and a month later added three executives to its Menlo Park, Calif., office.
Mr. Hilton said Mr. Helsom was never someone just "keeping a seat warm." He said the company will continue its focus on client services. "We are going to stick to our knitting and focus on clients. We will be proactive to client services and responsive to their needs and find investment products they are looking for," he said.
This means exploring opportunities with alternative investment products. Mr. Hilton said many of Bessemer's clients are interested in venture capital buyouts and hedge funds and the company will keep exploring these opportunities.
"I don't think we will add much to the mix of investments, but alternative investments will continue to be an important part of our asset mix," he said.
Ms. Putnam said people at Bessemer were thrilled by the promotion.
"It is crucial to keep management happy. We work together, and we all saw this coming down the road. That makes every transition easier," she said. "We are not looking at a lot of turnover, and that is important. We always want to maintain a steady group of executives. We are a group that has a shared mission and long-term view. That binds us together. That binds us closer to our customers."
High-net-worth analysts said it is crucial for institutions that deal with the wealthy to steer the ship steadily during every executive transition.
"When you get down to it, the real assets for a trust company lie in client relationships," said Rus Prince, a Shelton, Conn., analyst. "Clients have to feel things are consistent and steady, or else they are going to bolt. By having a clear agenda and clear game plan, there is no upheaval. Nothing is out of control, and no one goes anywhere."
