The Depository Trust & Clearing Corporation said Tuesday it plans to add a chairman of the board, with separate duties from that of its chief executive officer, Don Donohue.
The move is being made, it said, to put DTCC in keeping with global standards on corporate governance.
“Adding this important new leadership role builds upon DTCC’s already strong corporate governance culture and provides a critical complement to Don Donahue—who continues as CEO—and his leadership team at a time when the financial world is undergoing unprecedented change,” said Art Certosimo, presiding director of DTCC’s Board of Directors.
The decision to separate the chairman and CEO roles is the outcome of discussions between DTCC's board and management, as well as a governance review completed this year. DTCC executive management proposed the separation.
The move comes at a time when DTCC has increasingly become involved in global business issues, particularly in Europe. The addition of the separate chairman promises better governance and improved management of risk.
DTCC has engaged Korn/Ferry International to conduct the search for a chairman and fill the post early in 2011.
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions.
In 2009, DTCC settled nearly $1.5 quadrillion in securities transactions.