Newport Beach-based Downey Financial Corp. said Monday that President Frederic McGill left after eight months with the savings and loan operator.
McGill was Downey’s third president in less than four years.
Downey, which doesn’t hold conference calls or offer other insights into its inner workings, appeared to have been grooming McGill as a potential successor to Chief Executive Dan Rosenthal.
In recent months, McGill, not Rosenthal, has been providing comments for Downey’s quarterly financial results.
The company didn’t say why McGill left.
Bad home loans made by Downey have led to its stock dropping more than 90% in the past year. It holds a market value of $75 million with assets of about $13 billion.
Downey has been known for high turnover among executives.
The chief executive post has seen at least eight different faces in the past 18 years.
In 2004 former chief executive Marangal “Marito” Domingo left after a seven-month stay.
He was replaced by Rosenthal, the former son-in-law of Downey’s Chairman and dominant owner Maurice L. McAlister.
McGill took over the president’s title from Rosenthal.
Some had speculated that regulators might have suggested Rosenthal was taking too much responsibility and that McGill was hired to appease them.
Others believed McGill was hired to potentially take over as the bank’s top officer.
McAlister is Downey’s largest stockholder with 20% of its shares. Though he retired in 1973 and now lives in Bullhead City, Ariz., he continues to go to board meetings and is said to have strong influence over decisions.
McGill had more than 30 years in banking, and was the president of Whittier-based Quaker City Bancorp Inc. until it was sold to Banco Popular North America in 2004.
He was given a lump sum payment of $900,000 by Downey, according to a release.
His salary was $590,000, according to a filing with the Securities and Exchange Commission.
