president and CEO John Tugwell -- just four months into his tenure.

The surprise announcement, made public yesterday, has forced the Island's second largest bank to seek its fourth chief executive in just one year.

The announcement comes just 15 weeks after Mr. Tugwell assumed control of the bank on May 5. His departure, not likely for several months, is said to be for personal reasons.

With a banking career that has spanned 36 years, Mr. Tugwell arrived at Butterfield's Bank after having been chairman and CEO of National Westminster Bankcorp. Inc., New York.

He followed W. Scott McDonald, who was named acting CEO of Butterfield's last October after the sudden departure of Michael Collier, for health reasons.

Mr. Tugwell took the bank's seat on the Bermuda Stock Exchange, but by mid-July had axed the bank's 23-person Singapore office, fired three top executives from the Bermuda head office, and put 50 more jobs from the London office on the chopping block, as the bank sought to completely withdraw from its UK deposit-taking and lending service.

But in the throes of a major shake-up of the bank, Mr. Tugwell suddenly advised the bank of his decision to leave a fortnight ago.

Chairman Sir David Gibbons said last night the move led to a meeting of the board of directors, which only took place yesterday morning.

"He may have penned the letter of notice around the time I left the Island the week of August 4. I was apprised of it about a week or so ago,'' Sir David said. "He has done an extraordinary job and is supportive of the bank. He should be proud of what he achieved and we have been very happy with his progress.

"But personal reasons have developed and the board has accepted that. He has agreed to stay as long as it is necessary and appropriate, which would be several months, I would think. And we are pursuing a replacement.'' The London firm which helped fill the position maintained a short list of potential replacements. Taking another applicant from the list can be done at no expense because of a standard guarantee in filling the position.

Sir David said last night that Mr. Tugwell's reorganisation plan for the bank will be continued.

He said: "There will be no deviation from his plan. It was fully supported by the board when he first presented it and the results have totally vindicated his recommendations and our judgment. In fact, he should complete his plan by the time he leaves Bermuda. He is not leaving before that is completed.'' In Sir David's prepared statement, the bank publicly commended and thanked Mr.

Tugwell for his service, noting that in a brief time, he was able to "cut costs, eliminate redundancy, and institute management programmes to develop new business initiatives for Butterfield around the world.

"Therefore, I am sad to say that Mr. Tugwell will be leaving the bank for personal reasons at a date to be mutually agreed and will be pursuing other interests in the United States.''