A shroud of mystery surrounds the unexpected retirement of East Boston Savings Bank President and Chief Executive Officer Robert Verdonck, 62, who stepped down suddenly June 6 after signing a 2-year contract late last year.
“We are all surprised by the decision he made to leave the bank,” said Massachusetts Bankers Association Executive Vice President Kevin Kiley, adding that Verdonck is “a well-respected industry leader.”
One bank board member called Verdonck “a great guy,” but declined further comment about his departure or the board’s decision last Monday to name EBSB board chairman Rich-ard J. Gavegnano CEO and acting president.
“He’ll be successful wherever he goes,” added board member Anna DiMaria, an attorney in East Boston.
Board member Edward Lynch also declined comment, saying, he felt he “shouldn’t.” Several other members did not return phone calls, and Verdonck did not respond to a phone message from Banker & Tradesman. A bank spokeswoman said he was traveling out of state.
Many industry colleagues Verdonck had gotten to know in his 22 years at the helm of East Boston Savings – which grew from about $200 million to $1 billion in asset size dur-ing his tenure – did not know he was leaving.
“I wonder if it was about his health?” one wondered. Others rejected that possibility. Several commented that Verdonck appears much younger than his 62 years.
Another colleague speculated Verdonck may have gotten a hard-to-refuse retirement package, since the bank converted to partly stock-owned in January, meaning executives who owned stock could benefit from stock options.
However, neither Verdonck nor any other bank officer or board member is named as a major shareholder in a 10-K report on bank business operations and finances filed with the Securities and Exchange Commission on April 29.
The top two shareholders are Meridian Financial Services, which owns 55 percent of the shares, and Bay Pond Partners, a division of Wellington Management Co. in Boston, which owns 5.5 percent. All board members own less than 1 percent.
A third observer suggested that Verdonck’s departure could “raise eyebrows among some investors [in that] a $1 billion, publicly held bank retired its CEO and president, and a director with no prior experience as a banker is stepping in as CEO.”
But North Shore risk management consultant David Sidon said it’s not unusual for a bank director to step up to top executive positions temporarily when an executive unex-pectedly leaves. Gavegnano retired in 2006 as a vice president of the A.G. Edwards & Sons investment firm. He has served as an EBSB corporator, trustee and director for 34 years.
More on His Plate
He had been chairman of the board and CEO of EBSB’s holding company Meridian Interstate Bancorp, as well as EBSB’s board chairman. Last week, the bank’s board voted to name him to the additional roles of acting president of Meridian, and CEO and acting president of EBSB.
He is also Meridian Interstate’s investor relations contact and chairman of the board of $42 million Hampshire First Bank, a bank that opened in 2006 in Manchester, N.H., and in which Meridian Interstate owns a 40 percent interest.
The board also named Gavegnano to lead a search committee that will seek candidates for permanent positions of president of Meridian Interstate and president of East Bos-ton Savings Bank.
Gavegnano did not respond to phone calls for this report.
Gavegnano, 61; Verdonck; and East Boston Savings Bank senior officers Philiop Freehan and Leonard Siuda signed “substantially similar” executive retirement agreements with EBSB in April, according to SEC filings.
In accordance with his separation agreement with the bank, Verdonck will step down as a bank board member and continue to earn his annual salary of approximately $371,000 for two years. He will be paid an additional $2.3 million, under his retirement plan, this December.
