BMO Capital Markets CEO announces his retirement

BMO Capital Markets, a significant division accounting for approximately 20% of the bank's profit, is undergoing changes in leadership and workforce adjustments. The announcements were made following a challenging period for the division, marked by a 42% slump in dealmaking throughout the first half of 2023, compared to the previous year.

On Tuesday, BMO Capital Markets announced that Dan Barclay, the division's CEO, is retiring. Barclay, who joined BMO in 2003 after stints at Scotiabank and Morgan Stanley, has had a 32-year track record at BMO Capital Markets. His contributions to client service, ethical leadership, innovation breakthroughs, and strategic counsel to the senior leadership team have been instrumental in positioning BMO as a leader in sustainable finance and advocating for a sustainable energy transition, according to BMO's CEO Darryl White.

Brad Chapin will serve as interim global head of investment and corporate banking at BMO Capital Markets until November 1, when Alan Tannenbaum takes over as CEO. Tannenbaum began at BMO Capital Markets in 2010 and served as a managing director before being elevated to head of investment and corporate banking in 2021. He will also join BMO's executive committee with his new role.

Tannenbaum's predecessor, Dan Barclay, played a key role in positioning BMO as a leader in sustainable finance. Under his leadership, the division reported quarterly net income of C$310 million ($228 million) in August, a 18% increase from the same span in 2022. Higher revenue in global markets and investment and corporate banking offset higher expenses and a jump in loan-loss provisions for BMO Capital Markets, according to Bloomberg.

The downsizing at BMO Capital Markets came in response to the industrywide slump in dealmaking. The division cut roughly 100 positions, or 3.5% of its staff, beginning in June. The division is now focusing on managing expenses, growing revenue, and improving its relative efficiency ratio.

Darryl White, BMO's CEO, stated that Alan Tannenbaum is well-positioned to capture new growth opportunities for BMO Capital Markets and enable the growth aspirations of its clients. Tannenbaum, who previously worked as a managing director at Lehman Brothers from 1998 to 2006, according to his LinkedIn profile, will join BMO Capital Markets on November 1.

The information about the leadership changes and downsizing at BMO Capital Markets was reported by Reuters, Bloomberg, and The Globe and Mail.