Bank of America Announces New Chief Financial, Technology and Legal Officer

Bank of America CEO Brian Moynihan has announced the most radical management overhaul in his 12-year tenure atop the giant financial institution.

In a memo distributed to employees on Friday, Moynihan appointed a new chief financial officer, chief technology officer, general counsel and chief executive officer. The company’s management team has added five new members, he said.

“These changes position the company with very energetic leaders who are committed to fostering responsible growth throughout its second decade,” Moynihan, 61, said in the memo. “As I shared with our Board of Directors, it will always be my privilege to serve with them as CEO.”

These measures strengthen Moynihan’s leadership position in Bank of America, the second largest US bank in terms of assets. Moynihan took over in 2010, first stumbling with the gargantuan task of cleaning up the mess left by his predecessor’s acquisition of mortgage lender Countrywide Financial during the depths of the financial crisis. He has since stabilized the ship, reducing costs and improving yields.

The redesign comes weeks after the company announced the departure of COO Tom Montag, who was widely seen as the prime candidate to replace Moynihan if needed. There is no imminent need to appoint another COO, according to a person with knowledge of the company.

Instead, several division heads who once reported to Montag will now report directly to Moynihan. This includes Jim DeMare, who continues to lead the company’s global business operations, and Matthew Koder, who continues to head the global merchant and investment banking division.

Here are the main changes to Moynihan’s 2,249-word memo:

* Alastair Borthwick, a former Goldman Sachs executive who recently headed the World Commercial Bank, will replace Paul Donofrio as CFO in the fourth quarter. Donofrio, who served as CFO for six years, will become the bank’s vice president and oversee the bank’s sustainable finance efforts.

* Aditya Bhasin has been appointed Chief Technology and Information Officer and Tom Scrivener has been appointed Chief Operating Officer; the two men will replace Cathy Bessant, who served as Chief Technology Officer for over 12 years. Bessant will move to Paris to become vice president of the bank’s global strategy.

* Lauren Mogensen has been promoted to Global General Counsel, succeeding David Leitch, who will retire next year. Mogensen was previously responsible for the bank’s global compliance and operational risk.

* D. Steve Boland has been appointed Chief Administrative Officer replacing Andrea Smith, who is retiring after 34 years in the bank.

The five new members of the management team are Bhasin, Scrivener, Mogensen and two new reports to Director of Consumer Banking, Dean Athanasia. They are Holly O’Neill, newly appointed President of Retail Banking, and Wendy Stewart, Head of Global Commercial Bank.

Internally, Athanasia, Borthwick and Boland are seen as contenders for the future CEO, according to the person with knowledge of the company who declined to be identified speaking on personnel issues.

But Moynihan has publicly stated that he wants to serve as long as he can and admires Warren Buffett’s long tenure atop Berkshire Hathaway.