8-K: Fulton Financial Corporation Appoints Richard Kraemer as Chief Financial Officer

Fulton Financial Corporation has appointed Richard Kraemer as its new Chief Financial Officer, succeeding interim CFO Beth Ann L. Chivinski, who is retiring at the end of the year.

Summary

• Fulton Financial Corporation has appointed Richard S. Kraemer as Senior Executive Vice President and Chief Financial Officer, effective November 1, 2024.
• Kraemer joined Fulton on September 3, 2024, as Senior Executive Vice President and Chief Financial Officer Designee.
• He replaces Beth Ann L. Chivinski, who served as Interim Chief Financial Officer and will retire on December 31, 2024.
• Chivinski will provide consulting services to Fulton from January 1, 2025, to June 30, 2025, for a lump sum payment of $1,250,000.
• Kraemer will oversee accounting, treasury, corporate development, tax, financial planning and forecasting, investor relations, procurement, and real estate.
• Kraemer has over 20 years of experience in the financial services industry, including roles with profit and loss responsibility for commercial business and leading corporate treasury and finance for a company with over $60 billion in assets.
• Fulton Financial Corporation is a financial holding company with more than $30 billion in assets, over 3,500 employees, and more than 200 financial centers.

Sentiment

Score: 7

Explanation: The announcement is positive due to the appointment of an experienced CFO and a smooth transition plan. The consulting agreement with the outgoing CFO is a positive sign of continuity. There are no significant negative aspects.

Positives

• The appointment of Richard Kraemer brings a seasoned financial executive with over 20 years of experience to the CFO role.
• Kraemer's experience includes profit and loss responsibility for commercial business and leading corporate treasury and finance for a company with over $60 billion in assets.
• The consulting agreement with Beth Ann L. Chivinski ensures a smooth transition and continued access to her expertise.
• The company has a strong financial base with more than $30 billion in assets.

Risks

• The transition of CFOs could pose a short-term risk if not managed effectively.
• The company will be paying $1,250,000 for consulting services to the outgoing CFO.

Future Outlook

The company expects Richard Kraemer to contribute to its continued success, leveraging his experience in financial services.

Management Comments

• Curt Myers, Chairman and Chief Executive Officer, thanked Betsy Chivinski for her service and contributions, including her role in the Republic Bank transaction and common stock issuance.
• Curt Myers expressed confidence that Richard Kraemer will contribute greatly to the company's continued success.

Industry Context

The appointment of a new CFO is a common occurrence in the financial services industry, often driven by retirement or strategic changes. Fulton's move to bring in an experienced executive like Kraemer aligns with the industry's focus on strong financial leadership.

Comparison to Industry Standards

• The appointment of a new CFO is a standard practice in the financial industry, with many banks and financial institutions regularly making changes to their executive teams.
• Kraemer's experience in leading corporate finance for a company with over $60 billion in assets is comparable to CFOs at larger regional banks, such as PNC Financial Services or M&T Bank.
• The consulting agreement with the outgoing CFO is a common practice to ensure a smooth transition, similar to what other financial institutions have done during executive changes.

Management Changes

Related Party Transactions

• The consulting agreement with Beth Ann L. Chivinski is a related party transaction.

Stakeholder Impact

• Shareholders may view the appointment of an experienced CFO positively.
• Employees will experience a change in leadership in the finance department.
• Customers and suppliers are unlikely to be directly impacted by this change.

Next Steps

• Richard Kraemer will assume his responsibilities as CFO.
• Beth Ann L. Chivinski will transition into her consulting role on January 1, 2025.

Key Dates

Keywords

Chief Financial Officer, CFO, Financial Services, Executive Appointment, Corporate Finance, Banking, Fulton Financial Corporation, Richard Kraemer, Beth Ann Chivinski