CIT Group Inc. announced in a press release that John A. Thain, the company's CEO, will be retiring on March 31, 2016 but will continue to serve as chairman of the board of directors.
Succeeding Thain as the new CEO once he retires will be Ellen R. Alemany, who will also become a member of the management team as vice chairman on November 1, 2015.
Vice Admiral John Ryan, a lead director at CIT, speaking on behalf of the board of directors, said in the press release that Thain has been a "pivotal leader" for CIT during its challenging times.
He said that Thain has helped in the successful corporate and financial restructuring of the company.
"Since taking the helm in 2010, he returned CIT to profitability; rebuilt its management team; eliminated or refinanced approximately $31 billion of high-cost debt; oversaw the termination of the Company's Written Agreement with the Federal Reserve; returned more than $1.7 billion to shareholders; established a premier Internet Bank, and completed the acquisition of Direct Capital and OneWest Bank."
Reuters also reported that Thain said during a phone interview that his work at CIT is done after a series of asset sales, purchases and shifts in the way the company funds itself.
"CIT had many things that were broken and needed to be fixed," he said. "What's left will be primarily a U.S.-based commercial bank, and that's what Ellen's expertise is."
Reuters adds that Thain has focused on reducing the company's reliance on bond market funding since taking over as CEO in February 2010.
His move has wiped out more than $30 billion of high-cost debt and increased CIT's use of deposit funding.
Reuters also mentioned that the company filed for bankruptcy in 2009 after losing access to funding in the bond markets during the financial crisis.
Alemany has been a director at CIT since January 2014 and is also a member of the Audit and Regulatory Compliance Committee, according to the press release.
She is also a member of the board of directors of CIT Bank N.A.
Ryan adds in the press release that Alemany is well suited to be CIT's CEO and lead the company forward due to her experience and leadership in the commercial banking sector.
She will assume the CEO position on April 1, 2016.
