CIBC appoints 4 new senior managers

CIBC (TSX:CM) shuffled the ranks of its senior executives Monday to give more responsibility to Richard Nesbitt, the bank’s head of investment banking, including oversight of the bank’s international operations.

CIBC (TSX:CM) shuffled the ranks of its senior executives Monday to give more responsibility to Richard Nesbitt, the bank’s head of investment banking, including oversight of the bank’s international operations.

Nesbitt, the former head of the company that runs the Toronto Stock Exchange who joined the bank in 2008, will take on CIBC’s international operations, including FirstCaribbean International Bank and treasury services.

He already oversees CIBC’s wholesale banking and technology operations.

The move comes as the bank said Sonia Baxendale, retail markets senior executive vice-president, would be leaving the company.

The bank did not give a reason for her departure, but credited her with establishing a strong retail markets franchise with market-leading positions and a track record of innovation.

BMO Capital Markets analyst John Reucassel said the changes provide a clearer list of the internal candidates to possibly replace CIBC chief executive Gerry McCaughey.

“We do not expect Gerry McCaughey . . . to retire any time soon, but a clearer view of potential internal succession candidates after almost six years as CEO appears appropriate,” Reucassel wrote in a note to clients.

CIBC said it made the changes to build business performance, but did not give further details.

“The changes we are announcing today will enable us to continue to execute our strategy while providing key members of our management team expanded responsibilities and new mandates that will be critical as we continue to grow our business,” CIBC president and CEO Gerry McCaughey said in a statement.

Other senior executives changing jobs Monday included David Williamson, Kevin Glass and Victor Dodig.

Williamson, who has been the bank’s CFO since 2008, will be responsible for CIBC’s personal and business banking.

Glass replaces Williamson as CIBC’s chief financial officer and will report to the CEO under his new role on the senior executive team. He has worked at the bank since 2009.

Dodig will join CIBC’s senior executive team as the bank’s new wealth management boss.

CIBC beat expectations in its most recent quarter on the back of strong growth in its retail banking and capital markets businesses. The bank said it earned $799 million or $1.92 per share, up from $652 million, or $1.58 for the same period a year earlier.

Last year, CIBC bought a $2.1-billion credit card portfolio from Citigroup’s Canadian MasterCard business, a transaction which made CIBC the country’s largest issuer of Visa and MasterCard credit cards.

The portfolio includes accounts associated with Suncor Energy’s (TSX:SU) co-branded Petro-Canada credit cards that offers the Petro Points rewards program.

CIBC stock was up 32 cents at $84.07 in afternoon trading Monday on the Toronto Stock Exchange.