Bank of Montreal plans to split the role of chairman and CEO by next year. BMO is the last major Canadian financial institution take such action.

Tony Comper, chairman and CEO, told the bank’s annual meeting Tuesday that BMO’s board decided the time is right because lead director Blair MacAulay is due to retire next year. “This will provide for an ample time for a smooth transition period,” Comper told shareholders at the bank’s 186th annual meeting in Toronto today.

Comper said BMO was the first Canadian bank to appoint a lead director, in 1997. The lead director takes the role of chairman in matters, such as executive remuneration, where the chairman-CEO would be in a conflict of interest.

“Today, BMO is taking the next step with the announcement of the impending appointment of a non-executive Chairman,” said Compter.

Earlier today, the Bank of Montreal reported a 34% rise in first-quarter profit thanks to revenue growth of four per cent, increases in productivity and decreases in loan-loss provisions.