Bank of Butterfield president and chief executive officer Michael Collier has taken a temporary leave of absence, it was revealed yesterday.

"Michael has been very tired and has done an awful lot of work in the last year, so he is now taking a holiday which he probably should have taken earlier this year. I spoke to him this morning and he is very happy and at a very nice house in New Hampshire,'' Bank of Butterfield chairman Sir David Gibbons, speaking to shareholders at the bank's annual general meeting, said.

"Scott McDonald will be the acting chief executive officer while Michael is away.'' Mr. McDonald, a Canadian, has been a director of the bank since 1980. He was vice chairman and chief operating officer from 1987 to 1992 when Mr. Collier succeeded him as chief operating officer. Previously, Mr. McDonald was a top executive with Bank of Nova Scotia in Canada.

He is also a consultant to the Bank of Butterfield, Sir David said, adding that he was therefore familiar with its operations and had a close working relationship with the bank's officers.

Mr. Collier is expected to resume his normal duties shortly and "we wish him a happy convalescence and look forward to seeing him back,'' Sir David said.

The leave comes after "doctor's direction,'' Sir David said.

Mr. McDonald, who lives in Canada, said he "hoped to be home by Christmas.'' After the announcement that Mr. McDonald would serve as acting president and CEO, a motion to reduce the number of board members from 24 to 16 was approved. Over six million shares voted by proxy with only one small shareholder opposed.

The new board, outlined in The Royal Gazette on October 3, was voted in unanimously.

Sir David said the move followed a banking trend where many large banks, such as the newly merged Chase/Chemical bank, reduce their main boards from 36 members to 12 or 16 and appoint regional advisory boards.