[ad_1]
Bank of America Corp Updates
Sign up for myFT Daily Digest to be the first to know about Bank of America Corp. news.
Bank of America chief executive Brian Moynihan has said he plans to continue leading the lender until the end of the decade, when he becomes the last Wall Street boss to seek an extended term.
In a note to employees, Moynihan, 61, announced a reshuffle in the senior ranks of the bank and said he had told the board of directors that it would be his “privilege to serve with [the new team] as Managing Director as we drive responsible growth throughout its second decade ”.
Moynihan is the latest banking executive to say he intends to keep a tight grip on his institution rather than handing over the reins to a younger successor. Raised to the highest position in 2010, he “plans to remain chairman and chief executive officer throughout this decade,” the bank confirmed.
Jamie Dimon, 65, of JPMorgan Chase, recently confirmed his desire to extend his term as CEO into a third decade. The bank’s board in July granted Dimon, who had led JPMorgan since 2005, a “special grant” of stock options, which the directors said reflected their desire for him to continue to lead the bank for a period of time. a “significant number of years”.
James Gorman, 62, told Morgan Stanley’s board of directors he is committed to staying at least three more years. However, he does not expect his tenure to extend beyond the next five, according to a person briefed on his plans, by which time he will have held the post for around 16 years.
The extended terms of CEOs have drawn criticism from corporate governance experts who argue that leaders who have been in office for a long time may find it difficult to prioritize new challenges.
And potential successors may get impatient and leave the bank, as has happened at JPMorgan, where a series of executives tipped for the top job have left in recent years.
Bank of America also announced on Friday the departure of three senior executives and a broader restructuring of more than a dozen senior positions.
“This means that we can apply a new perspective to the lines of authority to develop future leaders and give them new roles and responsibilities to drive our business model of responsible growth over the next decade,” the bank said.
Moynihan’s overhaul will remove layers of management between himself and important lines of business following retirement announcements last month from two senior executives, COO Tom Montag and Vice President Anne Finucane .
Montag, who for years was paid more than Moynihan, had accumulated a wide range of responsibilities and powers that are not usually associated with the role of COO. Having joined BofA when BofA acquired his former employer Merrill Lynch, he oversaw all activities serving businesses and institutional investors, including trading and investment banking.
Trading, investment banking and commercial banking business leaders who previously reported to Montag will report directly to Moynihan.
The bank also announced that Alastair Borthwick will replace Paul Donofrio as chief financial officer. Borthwick’s previous roles at BofA include Chairman of the World Commercial Bank and Co-Head of Global Capital Markets
The responsibilities of Finucane will be divided among several senior executives during the reshuffle.
Thomas Scrivener, Head of Consumer and Wealth Management Operations, will manage the bank’s enterprise-wide processes as Director of Operations.
This article has been edited to correct the new title and role of Thomas Scrivener.
[ad_2]
Source link