Gerry McCaughey has been named chairman and CEO, CIBC World Markets, succeeding David Kassie, who has left CIBC to focus on other interests.

McCaughey retains his responsibilities as vice chairman, wealth management, for CIBC.

McCaughey’s appointment was approved by the CIBC board of directors at their scheduled February 5 board meeting and is effective immediately.

“Gerry McCaughey’s leadership capabilities and his core values and operating principles are very much aligned with the strategic direction we have outlined for World Markets and CIBC — careful management of risk; a strategic focus on long-term objectives; and constant attention to the needs of clients,” said John Hunkin, CIBC president and CEO, in a news release. “He is the right person to take World Markets forward.”

McCaughey, 47, began his career in 1981 as an account executive with Merrill Lynch in Montreal. In 1990, CIBC Wood Gundy acquired the Private Client operations of Merrill Lynch Canada. As a result of this acquisition, McCaughey became the branch manager of the merged main office in Montreal, Wood Gundy’s largest and most profitable office. He rose through a progression of postions with the firm.

In July 1997, McCaughey was named head of Global Private Client Investments, which included the Private Client Division of Wood Gundy and CIBC Oppenheimer, and he relocated to New York.

In June 1999, McCaughey was appointed senior executive VP, CIBC, responsible for wealth management. He was appointed vice chairman, Wealth Management, in December 2002.

McCaughey graduated from Concordia University in 1981 with a Bachelor of Commerce degree.

Hunkin also praised Kassie’s contributions to CIBC.

“David Kassie is a superb investment and merchant banker. He led CIBC World Markets to preeminence in Canada, as witnessed by the top rankings he and his team achieved in 2003,” said Hunkin.

Kassie’s resignation comes just two days after a former CIBC World Markets executive, Paul Flynn, was arrested and charged in an expanding investigation into illegal U.S. mutual fund trading.