Berkshire Bank CEO steps down

Courtesy/Creative Commons/Terageorge The Commerce Bank location on Main Street in Worcester.

Richard Marotta

Michael Daly

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The president and CEO of Berkshire Bank’s parent company has stepped down abruptly with no explanation.

Michael Daly left the position Tuesday, the bank announced in a press release. In a statement, Daly said he’s proud of the accomplishments the company has made since he started as CEO.

“When I began my tenure 16 years ago, Berkshire Bank was one of the smallest banks headquartered in Massachusetts with some 300 employees. The company is now the largest with nearly 2,000 employees," Daly said. "I've built long lasting relationships with many employees during this time who I will continue to view as my family."

Berkshire will pay Daly $7.5 million as part of a separation agreement, including $1 million payable on the company’s next pay date, $3.5 million six months after the execution of the agreement and two payments of $1.5 million a year and 18 months after the agreement, according to a filing with the U.S. Securities & Exchange Commission.

Berkshire acquired Worcester’s Commerce Bank last October for $230 million. Following the transaction, Berkshire moved its headquarters from Pittsfield to Boston.

Replacing Daly at the helm of Berkshire Hills Bancorp, Inc. will be Richard Marotta, the president of the bank, who will become CEO and sit on the company’s board of directors.

Chief Operating Officer Sean Gray will become president of the bank.