Two regional banks in New England are set to welcome new chief financial officers next month, marking the latest chapter in the
Webster Financial in Stamford, Connecticut, and Eastern Bankshares in Boston announced Monday that they've recruited experienced CFOs to take the place of their retiring finance chiefs.
In a press release, Webster said it has hired Neal Holland, the
Separately, Eastern announced that David Rosato, who was most recently the CFO at Berkshire Hills Bancorp, will succeed retiring CFO James Fitzgerald on Aug. 1. In May, Berkshire Hills said that Rosato would "step down to pursue other interests" and would remain with the company through June 14 as Berkshire transitioned his duties to new CFO Brett Brbovic.
Prior to joining Berkshire, Rosato was the CFO of People's United Financial in Bridgeport, Connecticut, when it was
Eastern announced Rosato's hiring in conjunction with the news that it has
Piper Sandler analyst Mark Fitzgibbon, who follows Webster and Eastern, was enthusiastic about both appointments, writing in a research note that Holland's experience at larger banks will be "invaluable" to Webster and that Rosato is "an excellent addition to an already strong team" at Eastern.
Both hirings come amid what observers say is an uptick in CFO turnover at banks. What had been a slow burn has ramped up because of retirements, burnout, changes in CEOs, heightened regulatory pressure and profitability challenges stemming from higher interest rates.
Banks that are growing at a fast clip, especially those approaching the $100 billion-asset threshold, may also be looking for CFOs with larger bank experience, observers have said.
Holland, who will report directly to Webster CEO John Ciulla, was also named executive vice president of finance at both Webster Bank and its $76.2 billion-asset parent company. In a press release announcing Holland's hiring, Ciulla cited his "significant experience [working] at larger banking institutions."
Holland, who has more than 20 years of strategic and financial experience, had been the CFO of San Francisco-based First Republic for about seven months
Prior to that role, he spent more than a decade at Tokyo-based banking giant Mitsubishi UFJ Financial Group in various finance roles
At Webster, Holland will receive an annual salary of $650,000, according to a recent securities filing. He will also be eligible for a target annual cash bonus award of 100% of his annual salary and a target annual long-term incentive award of 190% of his annual salary, the filing said.
Due to retirement, burnout, heightened regulatory standards and profitability challenges, lots of lenders are looking for new chief financial officers. The wave of departures is giving banks a chance to bring in more highly skilled finance chiefs.
In addition, he will receive a one-time grant of $750,000 of Webster restricted stock with a three-year vesting schedule; a $200,000 cash sign-on bonus; and $600,000 in relocation benefits, the filing said. Both the sign-on bonus and relocation benefits are subject to repayment if Holland voluntarily ends his position within the first year of his employment, the filing said.
Webster also announced Monday that its board of directors has elected William Haas, a former deputy comptroller of the Office of the Comptroller of Currency, to its board. Haas, who is currently a senior advisor to the Midsize Bank Coalition of America, previously served as the OCC's deputy comptroller for midsize bank supervision.
Eastern will pay Rosato a base salary of $550,000, the bank said in its own securities filing. Like Holland, Rosato will be eligible for a target annual cash bonus award at 65% of his annual salary and a long-term incentive award of 100% of his salary, the filing said.
Rosato will receive a cash sign-on bonus of $200,000, and following the start of his employment, he will receive a one-time award of restricted stock totaling $350,000, the filing said.
