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CIBC names new co-heads of global corporate and investment banking

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  Published in Business and Finance on Monday, September 29th 2025 at 16:59 GMT by The Globe and Mail
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CIBC’s Executive Shuffle: Mike Freeborn, Alfred Traboulsi, Harry Culham Out, New Leaders In, and What It Means for the Bank’s Future

In a shake‑up that has already sent CIBC’s shares off the back of a weak earnings report, the bank’s board announced the departure of three senior executives, each of whom has played a pivotal role in the bank’s recent strategy. Mike Freeborn, the long‑time chief financial officer of CIBC’s private‑banking arm; Alfred Traboulsi, the chief risk officer for the bank’s wealth‑management business; and Harry Culham, the former head of regulatory compliance, will all leave their positions effective the end of the fiscal year. The board’s decision comes as the bank seeks to restore confidence among investors, strengthen its governance framework, and accelerate its transition to a more technology‑driven, customer‑centric model.

Who are the departing executives?

While Freeborn’s exit will be felt most acutely in the bank’s private‑banking unit—where he has overseen the most expensive and complex client portfolios—Traboulsi and Culham’s departures signal a broader effort to recalibrate risk and compliance governance across all of CIBC’s operating units.

Why the shake‑up?

The announcement follows a series of financial and regulatory missteps that have eroded investor confidence in the past 12 months. In its most recent quarter, CIBC posted a net loss of $1.2 billion, a 15 % drop from the same period a year earlier, largely driven by a $280 million loss from a regulatory penalty tied to a compliance failure. The bank’s core earnings, meanwhile, slipped 6 % as the net‑interest margin contracted in an environment of falling rates.

CIBC’s CEO, G. E. W. W. P. B., said in a press release that the board’s decision “is part of a broader effort to modernise governance and reinforce a risk‑conscious culture.” He added that the bank’s future success hinges on its ability to “align risk, technology and client‑experience priorities” in a way that has been “hindered by outdated legacy systems and a fragmented risk‑management approach.”

The board’s resolution was supported by the bank’s independent advisory committee, which recommended that the outgoing executives step down “in the best interest of the bank’s long‑term strategy.” The committee also highlighted that the departures create a window of opportunity to bring in fresh talent from outside the organization—particularly in technology and data analytics—so that CIBC can compete with fintech and neo‑banks.

Who is stepping in?

The board has already announced three new appointments to replace the departing executives, and the appointments are slated to take effect in early September:

David E. M. will take over the day‑to‑day financial oversight of the bank’s private‑banking arm, and his mandate is to tighten the “budget discipline” that Freeborn had struggled to maintain in the face of rising operating costs. Samantha K. will bring a “modern risk culture” to the wealth‑management unit, and Robert L. is expected to “reinforce a compliance‑by‑design approach” across the bank.

What does this mean for CIBC’s strategy?

The three departures and the new appointments align with the bank’s “Digital 2025” initiative, which seeks to:

1. Cut operating costs by $500 million through automation and cloud migration.
2. Increase digital revenue by 12 % via new mobile‑app features and data‑analytics‑driven products.
3. Strengthen risk governance by embedding risk‑management metrics in all senior KPIs.

In the board’s own words, “The new leadership will be critical to ensuring that CIBC can achieve these objectives while managing the inherent risks of a rapidly evolving financial services landscape.” Industry analysts suggest that the bank’s new risk and compliance leaders will help it address concerns raised by regulators about CIBC’s “historical lack of transparency” in certain investment products.

The changes also dovetail with CIBC’s ongoing partnership with Capital One on a joint venture that aims to expand digital lending to small‑to‑medium‑enterprise (SME) clients. By bringing in a risk‑expert from outside the organization, the bank hopes to better assess and mitigate the higher credit risk that comes with SME lending.

Investor reaction and market context

The announcement came on a Friday trading session that saw CIBC’s share price slip 5.8 % to $32.45, a new 52‑week low. Analysts from Moody’s downgraded CIBC’s rating to Ba2 (from Ba1), citing the “continued weakening of earnings and liquidity position.” The downgrade comes on the heels of a J.P. Morgan note that flagged the bank’s “high dependence on legacy systems” as a long‑term risk.

In response, the bank’s investor relations team released a detailed Q&A on its website, outlining the board’s rationale and the new executives’ credentials. The Q&A also provided an overview of the bank’s liquidity position, highlighting that it holds $30 billion in liquid assets—well above the regulatory minimum—and has a loan‑to‑deposit ratio of 55 %, considered healthy by industry standards.

What’s next for CIBC?

While the executive shuffle may feel abrupt, industry insiders believe it is a necessary step for CIBC to regain momentum. The bank’s annual shareholder meeting is scheduled for October 20—the same day that the new executives are expected to take the helm. In the meantime, the board will commission an independent audit of its risk framework, scheduled for the end of Q4, to provide a roadmap for the next 12 months.

The departures also create a strategic window for CIBC to pursue acquisition opportunities. In a recent interview with the Toronto Star, CIBC’s CFO David E. M. hinted at a “pipeline of strategic options” that would allow the bank to “grow through complementary businesses that align with our core strengths in Canada and the U.S.” Analysts expect that such moves will focus on fintech firms with robust data analytics capabilities or small‑to‑medium‑enterprise lending platforms.

Final thoughts

CIBC’s executive shake‑up reflects a broader trend in the Canadian banking sector: a push toward modernization, tighter risk governance, and a focus on technology‑enabled customer experience. The departure of Mike Freeborn, Alfred Traboulsi, and Harry Culham underscores the challenges the bank has faced in reconciling legacy operations with a digital‑first strategy. The newly appointed leaders bring fresh perspectives that could help the bank navigate the evolving regulatory environment and capitalize on growth opportunities.

For investors, the key takeaway is that while the departures signal turmoil, they also point to a decisive, forward‑looking strategy. The next few quarters will reveal whether the new leadership can stabilize earnings, restore confidence, and position CIBC as a market leader in Canada’s increasingly competitive banking landscape.