Canadian lender BMO shakes up executive bench amid US business revamp

Bank of Montreal is revamping its management team amid a restructuring of its US businesses and the planned retirement of one of its top executives.

The Canadian lender hired Aron Levine, a three-decade industry veteran, from Bank of America Corp. to lead a newly combined US operation that will include personal and business banking, commercial banking as well as wealth management, according to a statement Thursday. Levine will be on the US management committee and report to both Chief Executive Officer Darryl White and Darrel Hackett, CEO of the firm’s overall US operations. 

Erminia Johannson, who has been with Bank of Montreal since 2012 and led its North American personal and business banking group since 2020, plans to retire early next year. She will be appointed senior adviser, the Toronto-based bank said.

White, who has been CEO since 2017, said the changes to his leadership team are aimed at boosting the bank’s profitability, as return on equity has flagged in recent years. The firm acquired San Francisco-based Bank of the West for $16.3 billion in a deal that was completed in February 2023, just weeks before the US regional-banking crisis deflated bank valuations. 

Last year, Bank of Montreal struggled with credit worries in its proportionally large commercial book, with particular trouble in the US. Large provisions for possibly bad loans dented its earnings for several quarters in a row, though executives said in December those issues were contained.   

“This next step supports the rebuilding of our ROE,” White said in the statement. “These experienced leaders bring the capabilities that will help us accelerate our performance.”

Levine was president of Bank of America’s preferred line of business until his departure in April. He had been with the firm since 1993 and held a succession of senior roles at the bank, according to his LinkedIn profile.  

Bank of Montreal announced several other executive moves Thursday amid the reorganization of its US structure. In Canada, Sharon Haward-Laird currently the bank’s general counsel, and Mat Mehrotra, currently chief digital officer, were named co-heads of personal and commercial banking. Haward-Laird was appointed group head of Canadian commercial banking while Mehrotra was named group head of Canadian personal and business banking.

Other changes include:

• Nadim Hirji, who already leads commercial banking, was appointed vice-chair.
• Deland Kamanga, who leads the wealth-management business, was designated executive-committee sponsor for “One Client Leadership Initiatives.”
• Mona Malone, who is chief human resources officer, added chief administrative officer to her title.
• Paul Noble, who was corporate secretary, was named general counsel and group head of legal and regulatory compliance. He will join the executive committee, reporting to White.

All the appointments will be effective July 7, Bank of Montreal said.