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(Bloomberg) – An era of power brokers near the top of Bank of America Corp. ends as CEO Brian Moynihan raises a fleet of young executives from the ranks of potential potential successors.
The reshuffle gives two men with years of banking experience much more stature. Alastair Borthwick will assume the role of CFO, while Dean Athanasia will add responsibility for commercial banking to his role of overseeing personal and small business banking.
Still, measures stop before identifying a clear successor for Moynihan, 61, who is already one of the longest-serving executives at a giant US bank and again signaled his interest in staying for years to come on Friday. . The company, in particular, has also failed to identify a new COO after the announcement of Tom Montag’s retirement last month, leaving potential avenues open for a roster of young executives to progress through the ranks. ‘to come up.
“The CEO will earn the right to stick around for another decade,” the company hinted at in a statement announcing the measures Friday, Wells Fargo & Co. analyst Mike Mayo said in a note. The “leadership changes seem logical with a smooth transition until the end of the year, and the changes involve long-standing internal employees.”
Borthwick currently runs the lender’s extensive commercial banking operation, which serves mid-sized businesses and industries such as real estate and education. The 52-year-old joined the management team in 2020, while working closely with Montag on transactions.
Athanasia, 55, is one of Bank of America’s longest-serving senior executives, having started at the bank in 1996. He recently supported more than 70,000 employees who were responsible for more than 66 million American consumers. . Beyond that, he has held positions serving clients ranging from small businesses to the ultra-rich, while also being responsible for adding thousands of financial advisors to the firm.
Monday’s work
Much of the upheaval stems from the planned departure of Montag, who retires at the end of the year after serving as chief operating officer and chairman of the investment bank. Most of his responsibility for banking services and global markets will be shared by three people: Matthew Koder will head the global corporate and investment bank, Jim DeMare will continue to manage global markets, including trading, and Athanasia. will take care of the commercial bank and the investment bank.
Wall Street executives have been watching to see who might take Montag’s position at the top of investment banking, a move that could send a signal about the company’s strategy and its risk appetite.
Instead, heads of key companies like DeMare, Koder, and Athanasia will report to the CEO.
Bank of America’s share in global mergers and acquisitions has grown, making it the No. 4 advisor in the world, while maintaining almost as much share this year as JPMorgan Chase & Co. in US debt underwriting. of quality, according to the compiled data. by Bloomberg.
Some key figures have left investment banking recently, including co-director Jack MacDonald, who joined boutique investment bank Centerview Partners with a pair of tech bankers.
DeMare’s business activities in global markets have also faced defections. Longtime equities chief Fabrizio Gallo left last year after his fixed-income counterpart DeMare was promoted. The bank has since poached competitors to strengthen its ranks and give it a better competitive position.
Equity trading
Nonetheless, Bank of America’s equity trading activity was a highlight of its second quarter results, posting a 33% increase and showing signs of a rebound in activity that benefited from market volatility with the rest of the street.
Bank of America, like its competitors on Wall Street, strives to improve diversity within the company and within its senior ranks. The lender appointed 279 CEOs in January, about half of these women or people of color.
As the bank moved closer to its diversity goals, improving racial and gender representation in most areas of the business, it said it needed to do more. The latest changes contribute to this goal. The company has raised three women on the management team, Holly O’Neill, Lauren Mogensen and Wendy Stewart.
In addition, the new direct reports to Moynihan include two black executives, an Asian executive and another executive who is a female. Cathy Bessant, one of the most senior women on the executive team who has led technology and operations, will take on a new role as vice president in Europe. She will work abroad with European boards focused on integrated global strategy, governance and client management.
Filling the current roles of Bessant, Aditya Bhasin has been appointed Chief Technology and Information Officer. Most recently, he was the bank’s chief information officer and chief technology officer for consumer, small business and other divisions. Tom Scrivener, who was responsible for consumer, small business and wealth management operations, takes on the new role of director of operations.
The bank also announced the departure of one of its most senior women in the banking division, Sanaz Zaimi. She was responsible for sales of fixed income, currencies and commodities and rose through the ranks under Montag as a former student of Goldman Sachs Group Inc. She took charge of international banking transactions and was responsible for FICC sales in the midst of an executive reshuffle in 2020, when she was added to the executive team.
(Updates to add reference to Moynihan’s comment on retention in third paragraph)
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