First Niagara Financial Group (FNFG) shares fell almost 5% after the company announced its new CEO.
After a nine-month-long search, First Niagara announced that Gary Crosby will be the company’s new CEO. Crosby had been acting as the temporary CEO of the company during the search for a new CEO. Analyst believe that the drop in FNFG shares may be the result of investors expecting an outsider to take over as CEO, reports The Street.
While Crosby may not have been the bank’s first choice, he does know the company. Crosby has previously worked as First Niagara’s chief administrative and operating officer. According to one a bank recruiter from Chartwell Partners, who wasn’t involved in the decision to make Crosby to CEO, he was the “least risky move” for the bank, reports Businessweek.
Damon DelMonte, a KBW analyst, told The Street that even if Crosby can help FNFG stock, the bank could still look into other options to increase earnings.
FNFG stock showed marginal increase as of Friday morning.