Comerica in Dallas, which has faced intense scrutiny from investors over its financial performance, has replaced its chief financial officer.
The $69 billion-asset company said in a press release Tuesday that Karen Parkhill resigned on Friday to "pursue other opportunities." Parkhill, who had also been the company's vice chairman, had been with Comerica since 2011.
Comerica said David Duprey, who had been its general auditor, had replaced Parkhill.
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After another disappointing quarter, Comerica is promising big changes in its ongoing quest to improve returns to shareholders. It appears to be considering all options, including selling off business lines and perhaps even merging with another institution.
April 19 -
Comerica may sell itself one day, but it won't be a very attractive takeover target or fetch top dollar until energy prices rebound and interest rates rise, company officials said at the annual meeting Tuesday.
April 26 -
Comerica reported a steep decline in first-quarter profits as weak energy prices forced the Dallas company to sharply boost its reserves for loan losses.
April 19
The shakeup comes at a tough time for Comerica.
The company said earlier this month that it had hired Boston Consulting Group to explore ways to boost profitability. Returns have lagged in recent years, as the company struggles with low interest rates and, recently, bad oil loans.
First-quarter profit plunged 55% from a year earlier, to $60 million. The company's return on equity fell to 3.13%, compared to 7.20% a year earlier.
Comerica is also facing increasing pressure from investors — including Hudson Executive Capital — to sell itself. Several investors traveled to Comerica's annual meeting in Dallas last week to express frustrations with the company's recent performance.
Still, executives have downplayed a sale in recent days, saying that they will focus, for now, on cutting costs and finding new sources of revenue. The results of their strategic review are expected later this year.
Duprey "will play an important role in driving the future of Comerica and creating value for our shareholders — especially in working with the Boston Consulting Group in its current review of our revenue and expense base," Ralph Babb, the company's chairman and chief executive, said in Tuesday's release.
