Northern Trust in Chicago announced late Tuesday that Frederick Waddell will retire as CEO at the end of the year and that it has tapped its president, Michael O'Grady, to succeed him.

Waddell, 64, has been CEO of the $126 billion-asset Northern Trust since January 2008 and has served as chairman since 2009. He will remain chairman after he retires on Dec. 31.

“I leave this role with great pride,” Waddell said in a news release. “Our leadership team is world-class, our strategies are poised for even greater growth and our financial performance is strong.”

Mike O'Grady, CEO of Northern Trust.
Michael O'Grady has held several top executive posts since joining Northern Trust from Bank of America Merrill Lynch in 2011.

Waddell has worked for Northern Trust since 1975. He served as chief operating officer of the bank and the holding company before being promoted to CEO in 2008.

O’Grady, 52, has been Northern Trust’s president since January, overseeing wealth management, corporate and institutional services and asset management. He previously was president of the corporate and institutional services business line. He also has been Northern Trust’s chief financial officer.

O'Grady joined Northern Trust in 2011 from Bank of America Merrill Lynch, where he had been a managing director in the financial institutions investment banking group.

“Mike is an experienced, results-oriented leader respected by clients, shareholders, employees and the communities we serve,” Waddell said in the release.

Prior to O'Grady's promotion to president, Jana Schreuder, Northern Trust's first female chief operating officer, was believed to be one of the contenders to succeed Waddell.

Northern Trust is scheduled to report third-quarter earnings on Wednesday morning. Both Waddell and O’Grady will participate in the call with analysts, a company spokesman said.

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