Philip Butterfield yesterday became the first black CEO of a major Island bank after being named to the Bank of Bermuda's top post.

The announcement came on the very day the bank closed its sale to multinational banking giant HSBC Plc, and was just one of the changes at the bank as the operations and financial reins were turned over to HSBC executives.

Named to those posts were Andy Gent and Nigel Crow, both with HSBC since 1977, and who are now COO and CFO respectively.

Mr. Butterfield, 57, takes on leadership of the bank from Henry Smith who yesterday stepped aside to oversee the company's integration into the HSBC group. To do that he has been named executive director, a temporary post he will hold through the next year.

The bank's sale to HSBC was approved by shareholders and regulators on Monday, and HSBC Group CEO Stephen Green and general manager Iain Stewart were on the Island yesterday to sign and seal the deal. They have both also been appointed to the bank's board of directors.

A Bermudian, Mr. Butterfield, had been chief operating officer since August, 2001 but joined the bank the year before that as chief administration officer. His posting to the Island's largest bank followed a 28-year career in the US, most recently as chief of staff for Citibank Private Bank.

Mr. Gent assumes the position that Mr. Butterfield held while Mr. Crow replaces Ed Gomez. Although not present at yesterday's press conference announcing the management changes, Mr. Gomez, CFO for eight years, was wished all the best in his future endeavours by chairman Joseph Johnson.

The fact that Mr. Butterfield is the first black to lead a major financial services organisation in Bermuda was not something he said he gave more than a passing thought.

"I do not attach much significance to my complexion. I attach much more significance to my experience and working relationships with colleagues. The fact that I am succeeding Henry makes my job that much easier. The fact that I am Bermudian is icing on the cake. The fact that I am black, that is great but not consequential," he said.

Mr. Butterfield said he was becoming CEO at a time when the bank was more poised for success than at any other time in its 114-year history. For this he gave much credit to his predecessor, praising Mr. Smith for his accomplishments as CEO during the past seven years. And he thanked him for taking on the "critical role" of overseeing the company's integration into the HSBC group.

Mr. Smith, 54, and a 30-year veteran of the bank who rose through the ranks from teller to CEO, said late last year that he would step down from his post as CEO at the bank within a year of the sale to HSBC. But in a surprise move, the bank's board posted Mr. Butterfield on day one, and as Mr. Smith handed in his resignation as CEO.

Although critics of the deal have questioned whether there will be any challenge left for senior management in the bank buy-out - as the dynamics of the bank's business are set to change with its global operations ceasing to be a real part of the bank, but absorbed into HSBC's operations - Mr. Butterfield said he did not see it that way, citing the bank's growth potential as being greater than ever under HSBC.