Moody’s finance chief leaves for new CFO gig

Dive Brief:

Moody’s Corp.’s CFO Mark Kaye is resigning from the New York-based financial services firm, effective Sept. 5, after accepting a new finance chief role at another company, the company announced Thursday. Moody’s, which did not specify where Kaye will move, also said the departure was not related to any disagreements with the company. Kaye has held the top finance role at Moody’s for five years.
Moody’s — the New York City-based parent of the credit rating giant Moody’s Investors Service — gave the additional position of interim CFO to Caroline Sullivan, who will continue serving as the company’s chief accounting officer and corporate controller, as she has since December 2018. The company has hired a search firm to evaluate both internal and external candidates to replace Kaye, according to a company filing with the Securities and Exchange Commission.
Rob Fauber, Moody’s president and CEO, in a statement in the release, described Kaye as a “trusted partner” as the company had expanded its capabilities, noting he “played a key role in advancing initiatives that have positioned Moody’s well for the future, including incubating the ESG capabilities that are now important components of our ratings and research franchises, and in establishing our award-winning sustainability work.”

Dive Insight:

Companies often turn to chief accounting officers to fill in for departing CFOs. It does not always lead to a permanent top finance role, but sometimes it does: Hertz Global Holdings last month promoted interim CFO Alexandra Brooks to become permanent CFO last month, CFO Dive previously reported. Brooks was tapped in March to become the car rental company’s interim CFO, while also remaining in the role of chief accounting officer.

Prior to joining Moody’s, Sullivan was at Bank of America from 2011 to 2018 where she held a number of roles, with the last role being managing director and global banking controller. She was also previously a controller supporting the bank’s global wealth and investment management business. A CPA, she started her accounting career at Ernst & Young, according to the release. Moody’s gave Sullivan a cash bonus of $100,000 taking on the new position payable when her stint in the CFO seat ends, and also granted her $200,000 in equity, according to the SEC filing.

In its July 25 Q2 earnings release, Moody’s reported revenue rose 8% to $706 million from the year-earlier period, marking its 62nd consecutive quarter of growth, noting that issuers seeking to refinance in advance of the U.S. debt ceiling deadline led to higher-than expected investment-grade activity in the period. Diluted earnings per share rose to $2.05 in the second quarter from $1.77.

Moody’s did not immediately respond to a request for comment.