Henry Smith yesterday stepped away from the post of CEO at the Bank of Bermuda yesterday to oversee the bank's integration into HSBC Plc.

His move follows the Island's largest bank being sold off to the multinational banking giant this week, in a $1.3 billion takeover first announced last October. The sale closed yesterday, and in quick succession, Mr. Smith handed in his resignation. Chairman Joseph Johnson said this development would allow Mr. Smith "to devote his time to overseeing the critical process of integrating our operations and staff into HSBC. In order for Mr. Smith to carry out these duties, he was today elected executive director of the Bank of Bermuda. These duties, over the next year, will take him around the world. He will report directly to the bank's board."

Mr. Smith, a 30-year veteran of the bank, was cited "as carrying out duties with integrity and professionalism and certainly leaves a very large pair of shoes to fill. This is not the end of Henry Smith, and integration in very good hands with his leadership."

Although leaving the CEO post he has held for seven years, Mr. Smith said he had been "particularly pleased to be able to shape this critical period in our history. It has been extremely rewarding to be at the centre of all of this, " and he praised his successor Philip Butterfield.

"With Phil I know we are picking the right guy, " he said.

"This is really a happy day for me. I always recognised one of my most important jobs was to be able to replace myself with someone who could run the Bank of Bermuda the way it needs to be run. Some years ago I went to New York to find Mr. Butterfield and coaxed him in to coming to Bermuda. He is here, taking on the role of CEO. I have done my job in that respect."

Mr. Smith was asked, in a previous interview with The Royal Gazette, what he saw as his greatest achievement at the bank. "I hate to speak to my own legacy but I would like to think that my impact on this bank is seen as an agent of positive change. You would have to talk to my staff to confirm it, but I believe the culture and the staff environment at the bank is today very different than when I took over. I have tried very hard to create an open, communicative, supportive kind of environment. And that extends to Bermuda - I think this bank today is seen as much fairer than before I took over. Some will not change their minds, but I think many see that we are trying to be fair," he said.

In addition, Mr. Smith said he was proud of having seen the bank listed on US exchange the Nasdaq, as well as its sale to HSBC. The bank was this week delisted from the BSX and Nasdaq.

"I think the listing was a huge step for this organisation and now this (sale to HSBC) is another huge step. And it is not just for the bank, this is for Bermuda. We could well be sowing the seed of another significant industry for this Island. And we need that, because we are a one-horse town right now, with insurance."

As for his new task, he said the integration would be a "detailed, somewhat complex process" that he would not be able to give his full focus if still tasked with being bank CEO. He promised the integration would be "gradual, measured and seamless for clients and staff".

Mr. Johnson said the executive director post was a temporary one, designed for the specific task of integrating the bank into HSBC. And Mr. Smith said his involvement with the bank afterwards would depend on the board, although he said he would take a "personal interest" for years to come.