July 15 (Bloomberg) -- Northern Trust Corp., the third- largest independent custody bank, gave four senior executives new positions in a reshuffle that grooms them for top leadership roles.
Jana R. Schreuder, 55, will take over as chief operating officer from William L. Morrison, 63, who will remain president, the Chicago-based company said today in a statement. S. Biff Bowman, 51, was named chief financial officer, while CFO Michael G. O’Grady, 48, will become president for corporate and institutional services. The changes take effect Sept. 1.
“Over the years, Northern has moved senior people around to broaden their managerial experience,” Gerard Cassidy, an analyst at RBC Capital Markets in Portland, Maine, said in an interview. “They do that so when the time comes to replace their CEO, they’ll have a deeper choice of successors.”
Chief Executive Officer Frederick H. Waddell, 61, has led Northern Trust since 2008. The company, along with other custody banks, has struggled to increase profit amid record-low interest rates. It cut 700 jobs and reduced expenses in 2012 aimed at saving an annual $250 million.
Schreuder will be replaced as president of wealth management by Steven L. Fradkin, 52, who is president of corporate and institutional services.
“Our ability to make these leadership changes is a testament to the depth and breadth of our leadership team and will further enable our efforts to accelerate our growth,” Waddell said in the statement.