Story updated with analyst comment.

NEW YORK ( TheStreet) -- Bank of New York Mellon's ( BK - Get Report) board replaced Chairman and CEO Robert Kelly, citing differences in approach to managing the company.

President Gerald Hassell will replace Kelly as Chairman and CEO effective immediately, the trust bank announced late Wednesday.
Robert Kelly
Robert Kelly

"Gerald is ideally positioned to guide BNY Mellon through the next phase of its growth and to bring it to its full potential," said Wesley W. von Schack, lead director of BNY Mellon. "As the executive currently overseeing our investment services business and our global client management function, and given his extensive and long-standing relationships with investment management clients, Gerald is exceptionally well-suited to ensure BNY Mellon maintains and strengthens its role as a global market leader," he said.
Gerald Hassell

The board thanked Kelly for his services. "He played a key role in the integration of The Bank of New York and Mellon Financial following the merger and helped navigate the company through the financial crisis, securing its position as the world's leading provider of investment management and investment services. Bob Kelly is a person of the highest integrity and we wish him the best in his future pursuits," said von Schack.

"It has been an honor to serve BNY Mellon, its management team and its employees during the past four years," said Kelly. "We have navigated tremendously difficult markets and built one of the world's premier financial institutions. I am confident that under Gerald's leadership of the firm's strong management team, BNY Mellon will continue to flourish going forward."

Marty Mosby, an analyst with Guggenheim Securities, says that while he has no direct knowledge of any disputes between Kelly and the BoNY board he assumes it has to do with how the bank will drive growth.

"There was some direction that Robert Kelly wanted to go, and the board and didn't want to go, that is at the heart of this," Mosby says. "Usually CEOs are very aggressive and they want to be into growth mode. If they are held back they simply say 'Well, I don't want to manage that way."

Shares were down 1.3% in aftermarket hours at $20.73.

--Written by Shanthi Bharatwaj in New York

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