Webster Bank president stepping down to ‘pursue other interests’

Plush Plush Photo: Journal Register Co. Photo: Journal Register Co. Image 1 of / 1 Caption Close Webster Bank president stepping down to ‘pursue other interests’ 1 / 1 Back to Gallery

WATERBURY >> Gerald Plush, president of Webster Financial Corp. and the man many had expected would replace Chief Executive Officer James Smith when he retires, announced Monday is leaving the Waterbury-based bank to pursue other interests.

Plush, who joined Webster in 2006 and was also on its board of directors, will leave the bank at the end of the month.

He was unavailable for comment Monday, but said in a statement issued by the bank that he took “great pride in having been part of such a terrific organization and working with such a wonderful group of people.”

“I am grateful for the opportunity to have been able to contribute in a number of roles over my seven years here,” Plush said.

Smith described Plush in a statement as someone who “ has made many important contributions in increasingly responsible roles, becoming only the fourth president in our 78-year history.”

“I’ve enjoyed a close working relationship with him and have always admired his remarkable energy and creative leadership in relentless pursuit of our strategic goals,” Smith said. “Jerry’s colleagues and I appreciate his extraordinary efforts and dedication in helping guide Webster along the path to high performance. We respect his decision and wish him success and happiness in the years ahead.”

Despite the bank’s attempts to put the best possible face on Plush’s abrupt departure, industry consultant John Carusone of the Bank Analysis Center called the announcement “unusual” and said it was likely the result of a philosophical disagreement over the strategic direction the bank was taking.

“This is a major event in the bank’s life cycle,” Carusone said. “If I were a major investor in the bank, I’d be a little nervous and asking a lot of pointed questions about why this happened.”

Carusone said a seasoned banking veteran like Plush will be in demand by other banks.

But it is unlikely that Plush will end up at another large regional bank like Webster since he probably signed a contract no compete clause that prohibits him from taking another job at a similar type of financial institution for at least three years.

Prior to joining Webster, Plush was employed at MBNA America in Wilmington, Del., for 11 years in a number of senior executive positions.

He joined Webster as the bank’s executive vice president and chief financial officer in July 2006 and a year later became senior executive vice president.

By July 2008, Plush had become Webster’s chief risk officer, a role that he held through August 2010. He was promoted to vice chairman and chief operating officer at the start of 2011 and became president and member of the bank’s board by the end of that year.

News of Plush’s pending departure resulted in heavy trading of the stock, with 1.31 million shares changing hands, more than twice its average volume. The bank’s stock trades on the New York Stock Exchange under the symbol WBS.

Webster Financial’s stock began the day at $25.35 and was as high $25.55 before it fell to a low of $24.53. By day’s end, it closed $24.96, a 2.04 percent loss from the previous day’s trading.

Call Luther Turmelle at 203-789-5706.