Finance
Citi’s new CFO is the latest sign the ‘operator’ era has arrived | Fortune
Good morning. The “traditional” large‑bank CFO path runs through corporate finance, controllership, and treasury with deep technical accounting credentials. But Citi’s newly appointed CFO, Gonzalo Luchetti, did not take that route. He instead brings what companies now increasingly want in a CFO: an enterprise operator and strategic partner.
Next month, after Citi files its 2025 year-end results, Luchetti will succeed longtime CFO Mark Mason, who will become executive vice chair and senior executive advisor to chair and CEO Jane Fraser. Mason plans to pursue leadership opportunities outside Citi by the end of 2026. His tenure at Citi also encompassed operational experience. According to people familiar with the matter, Mason’s long-term ambition is to become a CEO.
Luchetti has led U.S. Personal Banking since 2021 and joined Citi in 2006. At the recent 2026 Bank of America Securities Financial Services Conference, he discussed his career and global experience.
“I’ve worked in Latin America, in the U.S., in EMEA, in Asia Pacific,” said Luchetti, who described his background as Argentine American. “I lived for six years in Singapore, overseeing 18 markets in the retail bank and the broader consumer franchise. I saw digital develop in different countries and models and applied much of that in the last five years as head of U.S. Personal Banking.”
He has worked across businesses and functions, and at the local, regional, and global levels—starting in the private bank, then moving into wealth and the affluent franchise, and later overseeing the retail bank, unsecured credit cards, and secured mortgages.
“I think he is well equipped and armed to come in as our newly appointed CFO and continue the momentum,” Mason said on a media call last month. Citi (No. 21 on the Fortune 500) reported a profitable fourth quarter to close 2025.
Luchetti’s blend of operating experience, consulting, strategy, P&L leadership, and business‑unit CFO work reflects what many companies now look for in finance chiefs.
What boards want in CFOs now
The CFO role continues to evolve. Boards are seeking CFO candidates with demonstrated leadership beyond finance—particularly “operators” with enterprise-wide influence, according to Russell Reynolds Associates’ research.
Ten years ago, boards focused on controller backgrounds, deep accounting expertise, strong audit committee relationships, and FP&A rigor, Shawn Cole, president and founding partner of executive search firm Cowen Partners, recently told me. Now, he said, boards want CFOs who can lead technology transformation, manage geopolitical supply chain complexity, defend against activists, and navigate volatile capital markets—creating intense competition for a small pool of sitting CFOs with that modern skill set.
At the BofA conference, Luchetti highlighted mid-single digit growth in high-returning areas, like for Services and Wealth deposits and Cards and Wealth loans. Net interest income, excluding Markets, will be up 5%–6% in 2026. “We’ll talk about this at length at Investor Day,” Luchetti said. “Very clearly for us, the biggest objective this year is to deliver what we committed to, which is the 10% to 11% RoTCE [Return on Tangible Common Equity].”
His top priorities as he enters the role are twofold: “Number one, drive consistent, higher returns; and two, pursue excellence in execution.” He said it starts with durability: strong risk and control practices, a solid balance sheet, and ample liquidity, so performance is sustainable over time. In U.S. Personal Banking, that foundation helped Citi deliver 13 straight quarters of positive operating leverage and move returns from 5.5% RoTCE in 2024 to the mid‑teens in the back half of the year, Luchetti noted.
As CFO, he said, he will focus on clear accountability and execution—doing what Citi says it will do, acting early on risks, and maintaining urgency—combined with a “beginner’s mindset” to keep pushing for higher, sustainable returns.
In elevating Luchetti, Citi is effectively betting that the next era of value creation will be led by operator-CFOs.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Brian Piper was named EVP and CFO of Sana Biotechnology, Inc. (NASDAQ: SANA). Piper brings more than 25 years of experience. He was previously CFO of Scorpion Therapeutics until its acquisition by Eli Lilly in 2025, and thereafter served as CFO of Antares Therapeutics following its spin-off from Scorpion. Before that, he was CFO of Prelude Therapeutics, a publicly traded biotech company. Earlier in his career, he served as CFO of Aevi Genomic Medicine and spent 13 years at Shire Pharmaceuticals.
Vic Pierni was appointed CFO of Xsolis, a healthcare technology company. He brings more than 25 years of experience. Most recently, he served as CFO of Uniguest, a global digital technologies SaaS provider. Previously, he was CFO of Loftware, an enterprise supply chain SaaS company. Earlier in his career, Pierni held CFO and senior executive roles at Global Capacity and Verivo Software.
Big Deal
KPMG’s recently released Q4 2025 Credit Markets Update finds leveraged finance ended 2025 strongly, creating a borrower‑friendly start to 2026 but with clear medium‑term risks.
New‑issue leveraged loan volume reached about $709 billion in 2025, up from roughly $661 billion in 2024, the second‑highest level since 2021, while high‑yield issuance rose about 16% to more than $330 billion, driven largely by refinancing and a more dovish stance by the Federal Reserve. Refinancing still accounted for 44% of activity, but new‑money LBO and M&A deals led overall volume as the long‑anticipated M&A rebound emerged.
KPMG expects tight spreads, declining base rates, and an issuer‑friendly backdrop to keep capital costs low and support deal flow into early 2026, though data-dependent monetary policy means negative surprises in jobs or inflation could curb further easing.
Going deeper
“Airbnb CEO says AI is ‘the best thing that ever happened to’ his company—he warns other founders: ‘If you don’t disrupt yourself, someone else will’” is a Fortune article by Emma Burleigh.
Airbnb CEO Brian Chesky says AI has been instrumental to the success of his $73.5 billion short-term rental company. Now, the billionaire founder is telling other business leaders that the tech isn’t just a plus, it’s a necessity. Read more here.
Overheard
“It’s the biggest transformation opportunity in retail. That was really appealing to me.”
—Hillary Super, CEO of Victoria’s Secret & Co., told Fortune in an interview. The company brought her on in fall 2024, after its various rebrands were widely dismissed and sales were falling. She had previously served as global CEO of Anthropologie and, more recently, as CEO of rival lingerie brand Savage X Fenty. When she joined Victoria’s Secret, Super said she was “keenly aware of what the perceptions of the brand were, positive and negative,” but was ready to take on a challenge.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
Finance
Martha Aguirre, former El Paso ISD interim superintendent, resigns as CFO as district finds ‘key financial challenges’
El Paso Independent School District Chief Financial Officer Martha Aguirre, who served as interim superintendent last year, resigned this week as the district said it had discovered “key financial challenges.”
The district issued a news release late Thursday afternoon that lacked details but indicated that a recent review had raised questions about the district’s fund balances, a key indicator of financial health.
“Through this process, key financial challenges were identified that must be addressed prior to closing out the 2025-26 school year including a current budget shortfall that is being actively addressed ahead of the district’s final financial presentation to the Board of Trustees in June,” the news release said.
A CFO is charged with developing a school district’s budget and overseeing its finance department. The EPISD Board of Trustees must adopt a budget for the 2026-27 school year by the end of the fiscal year June 30. The operating budget for the current school year is $547 million.
EPISD Deputy Superintendent David Bates will oversee the budget while the district searches for an interim and permanent CFO, district officials said in a statement.
EPISD Board President Leah Hanany said trustees were notified about Aguirre’s resignation this week. She said the district plans to give the public more information on the current year’s budget during a board meeting later this month.
“The board was also notified of a potential budget shortfall for the 2025 budget, but we don’t have final numbers yet. My understanding is that we are still primed to pass a balanced budget for fiscal year 2026-27 in June,” Hanany said in a statement.
Aguirre could not be reached for comment. EPISD’s CFO makes $148,200 to $209,900 a year, according to the district’s administrative pay plan.
She served as EPISD’s interim superintendent from June to December 2025 after the district’s former superintendent, Diana Sayavedra, resigned under pressure from the board. She returned to her position as CFO when Brian Lusk was hired as EPISD’s new permanent superintendent.
Aguirre’s resignation comes amid an uncertain budget season after a state funding calculation error tied to school property tax breaks caused EPISD to lose out on $17 million in projected revenue. In late April, EPISD officials estimated it would cause the district’s spending to exceed its revenue next year by $10 million.
The district is also considering calling for a bond election in November to upgrade its aging campuses as part of the larger 2024 Destination District Redesign initiative to close schools and improve the ones that remain open.
El Paso Teachers’ Association President Norma De La Rosa said Aguirre’s departure was unexpected.
“We’re right in the middle of the committee meetings for a possible bond and getting ready to get that budget to the June board meeting for next school year. So, to say that I’m highly surprised is an understatement,” De La Rosa told El Paso Matters.
Aguirre started working with the district in 1996 as a general clerk, according to a video published by the district.
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