State Street announced Tuesday that Chairman and CEO Joseph L. Hooley plans to step down from his leadership roles. Ronald P. O’Hanley, currently vice chairman, president and CEO of State Street Global Advisors, the Boston company’s investment management unit, will succeed Hooley.
The changeover is expected to play out over the next two years, with Hooley relinquishing CEO responsibilities by the end of 2018 and retiring as chairman a year later.
News of State Street’s forthcoming management succession comes less than a month after another big trust bank, the $126 billion-asset Northern Trust in Chicago, announced that its president, Michael O’Grady, would succeed retiring Chairman and CEO Frederick Waddell at the end of the year.
Hooley, 60, joined the $236 billion-asset State Street in 1986. He was appointed CEO in March 2010 and chairman in January 2011. The company’s shareholder return has totaled 130% under Hooley’s management, according to State Street.
The bank reported a third-quarter profit of $629 million, up 24% over the same quarter in 2016. Its assets under custody and administration totaled $32.1 trillion as of Sept. 30.
“My greatest source of pride over the past eight years has been to lead this talented 36,000-strong team,” Hooley said in a press release. “I am very confident that Ron has the right qualities, expertise and vision to lead the next phase of State Street’s growth.”
O’Hanley, 61, possesses a strong background in asset management. Before joining State Street Global Advisors in 2015, he ran investment management units for Fidelity and Bank of New York Mellon. State Street named him vice chairman in January.
The company reported $2.7 trillion of assets under management at the end of the third quarter, up 9.3% year over year.
Cyrus Taraporevala, who followed O’Hanley from Fidelity to State Street in 2016, will succeed him at State Street Global Advisors.
State Street’s current president and COO, Mike Rogers, will retire Dec. 31.
O’Hanley, Taraporevala and Rogers will work together over the next two months to enable a smooth transition, the company said.
“I want to thank Mike for his contributions to State Street and his support throughout this transition,” O’Hanley said in the press release. “Cyrus is an excellent leader with expertise and experience that I know will strengthen outcomes for State Street Global Advisors’ clients.”