Today, OCC announced that John P. Davidson agreed to become president and COO of the organization starting May 8. Davidson was on the OCC’s board of directors from 2002 to 2006 and his 30+ year tenure in the industry encompasses time at Citigroup, Morgan Stanley and two stops at CME Group. Given the pattern of recent hires at OCC, the presence of the CME on Davidson’s curriculum vitae is far from a surprise.
Here’s the real rub — this comes right on the heels of this morning’s announcement from DTCC that it hired former OCC President and COO Mike McClain to be managing director and general manager of equity clearing. McClain’s last day at OCC was March 22 and the official storyline was he was leaving for personal/family reasons.
There’s a nugget buried in the seventh paragraph of the OCC release about Davidson — OCC Chairman and CEO Craig Donohue also announced that current SVP and chief audit executive Adi Agrawal was appointed chief business transformation officer.
Regarding the former CME angle, Davidson is far from the only one. James Pribel came over to OCC last year — he was formerly CME’s treasurer. Agrawal, Scot Warren and Joe Adamczyk joined OCC in 2015 from CME Group. When John Fennell was promoted, Dale Michaels joined OCC as EVP, financial risk management, after some 20 years at CME. David Prosperi also joined the OCC in 2015 and reps a stint at CME on his resume. Then, obviously, there is Donohue. I’ll apologize in advance for those with direct CME ties whom I forgot.
It’s not a secret that the OCC is and has been undergoing a cultural transformation since being designated as a systemically important financial market utility (SIFMU) and the departure of longtime leader Wayne Luthringshausen. But after all of these changes, longtime OCCers must be wondering about their chances for upward mobility.