Chadwick Westlake was expected to become head of Equitable Bank even before the previous CEO's death.Nick Iwanyshyn/The Globe and Mail
Equitable Bank has named Chadwick Westlake as its chief executive officer, bringing its former finance head back to lead the bank after previous CEO Andrew Moor died unexpectedly in June.
Mr. Westlake was chief financial officer of the digital challenger bank for four and a half years before he left in March to be CFO of enterprise software provider Open Text Corp.
After less than five months in that job he is heading back to EQ Bank, as president and CEO of parent company EQB Inc. on August 25, the bank announced Wednesday. He will also join the board of directors.
Interim CEO Marlene Lenarduzzi will lead the bank until then and return to her role as chief risk officer.
Bank spokesperson Maggie Hall previously said in a statement that a years-long succession planning process, which considered internal and external candidates, “was very advanced” when Mr. Moor died on June 23. By that time, the bank’s board and top leadership were already expecting to announce Mr. Moor’s retirement and Mr. Westlake’s appointment as his successor at the same time.
A change in CEO was always going to be a major event for EQ Bank EQB-T. Mr. Moor led the company for 18 years, overseeing rapid growth and helping establish the bank as a leading, low-cost alternative to the country’s established Big Six banks.
The bank’s identity was also deeply intertwined with Mr. Moor’s personality – he was outspoken and plainspoken, and a vocal advocate for innovation, change and the role smaller banks can play in the sector.
By bringing back Mr. Westlake, EQ Bank is installing a familiar face who knows the business intimately and often appeared at the bank’s offices or industry events wearing one of the company’s T-shirts under his blazer.
Mr. Westlake said he is returning to the bank in “a defining era in the evolution of banking,” in a statement.
“EQB’s market position is strong, with its full potential still to be unleashed,” he said. “It is the greatest honour of my career to take up the mantle of Andrew’s inspired leadership and rejoin my challenger teammates to further the remarkable institution he built.”
In Mr. Westlake’s tenure as CFO, under Mr. Moor’s leadership, EQ Bank’s share price more than doubled, from about $47 to $101, and its assets under management and administration swelled to $134-billion. The company also made acquisitions that included a $495-million takeover of Concentra Bank.
“After reviewing many outstanding candidates alongside Andrew, Chadwick stood above all others,” said board chair Vincenza Sera in a statement. “Not only does he possess all the requisite skills to be an outstanding CEO of a major bank, but he also knows our business inside and out and embodies our passion for customer service.”
A special board committee guided by director Susan Ericksen led the CEO selection process, with help from a recruitment firm.
As CEO, Mr. Westlake will need to steady the bank after weeks of shock and upheaval, chart EQ’s path to further growth and name a permanent CFO, as head of finance David Wilkes has been acting CFO since late February.
“We view this development positively as Chadwick was an experienced executive at the bank and oversaw key acquisitions and initiatives during a period of growth for EQB,” said Darko Mihelic, an analyst at RBC Dominion Securities Inc., in a note to clients.
CIBC World Markets Inc. analyst Paul Holden recently speculated that EQ Bank could be a takeover target for buyers who might look to take the lender private. Stephen Smith, who founded First National Financial Corp. and leads Smith Financial Corp., is the bank’s largest single shareholder and has added to his stake this year.
But “that window has likely passed for now,” Mr. Holden said Wednesday.
“The news today decreases the probability of a take-private transaction as the board has clearly decided to proceed as a public company with a well-established executive as CEO,” he said.
EQ Bank’s stock closed down 0.1 per cent at $102.58 on the Toronto Stock Exchange on Wednesday. Its share price is up four per cent so far this year, giving the company a market capitalization of $3.9-billion. Shares in Open Text fell 4.3 per cent to $39.50.
As CFO, Mr. Westlake led EQ Bank’s core finance functions, corporate strategy and development, treasury, investor relations and legal affairs.
Before his first stint at the bank, he spent more than 18 years at Scotiabank in a variety of roles that spanned retail banking, wealth management and risk.
This year, he made The Globe and Mail’s annual Best Executives list.
When Open Text hired Mr. Westlake earlier this year, the company’s CEO, Mark Barrenechea, called him “a proven winner.”