Comerica Inc. on Wednesday said that Eugene Miller will step down as its president and chief executive at yearend and be succeeded by Ralph W. Babb Jr., its chief financial officer.
Mr. Miller, 64, began working at Detroit Bank, Comericas forerunner, in 1955, sorting interest coupons in the collections department. He said he plans to continue as chairman through September 2002, then retire.
In a telephone interview Wed-nesday morning with both executives, Mr. Miller said the decision had been a few years in the making. This has been an organized process, he said. Mr. Babb, 52, has been chief financial officer at the $49 billion-asset company since 1995 and will continue in the post until a successor is named.
Mr. Babb has been a key member of our management team for several years. We want to demonstrate a smooth transition, said Mr. Miller, who called Mr. Babbs appointment an excellent choice.
Mr. Babb, meanwhile, said of Mr. Miller: I have great respect for all that he has been able to accomplish.
Mr. Millers tenure has many highlights. He rose to chairman, president, and chief executive at Comerica before its 1992 merger with Manufacturers National Corp. Mr. Miller has been involved in more than 50 acquisitions. He said is especially proud of the high profitability attained under his watch and of building a shareholder-oriented company. More than 90% of Comerica employees are also shareholders.
At most banking companies, the position of chief financial officer is not a launching pad to the top job. But Jennifer Thompson, an analyst at Putnam Lovell Securities, said that Comerica has clearly been grooming Mr. Babb for some time.
Mr. Babb is a member of Comericas policymaking management council, which has been responsible for efforts to improve customer service, increase efficiency, enhance revenue, and provide funding for future growth. Comerica has also restructured its balance sheet.
Comericas plan for Mr. Babb is a good one, Ms. Thompson said. It gives the CEO and the successor time to prepare.
Mr. Babb said he intends to keep Comericas focus on business banking and asset gathering, two areas that have worked well for us. He also will oversee the integration of Imperial Bancorp in Los Angeles, which Comerica bought for $1.3 billion in January.
Comerica has lately experienced increased competition in its home state of Michigan, where recent mergers have created some big competitors. Cincinnati-based Fifth Third bought Old Kent Financial Corp. of Grand Rapids, and ABN Amro, the parent company of Standard Federal Bank in Troy, Mich., is planning to acquire with Michigan National Corp.
The company is also preparing for a down cycle in the economy after the Sept. 11 terror attacks, Mr. Babb said.
Historically we have done well in a downturn, Mr. Babb said. We want to stay focused on our communities and employees.
