Bank of America Corp Update
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Bank of America CEO Brian Moynahan has indicated plans to continue to lead lenders until the end of the decade as he became the latest Wall Street boss seeking extended tenure.
In a memo to employees, 61-year-old Moynihan announced a bank’s top-ranked shake-up, telling the lender’s board of directors. [the new team] As Chief Executive Officer promoting Responsible Growth Throughout 20 Years ”
A spokeswoman confirmed that Moynihan, who was promoted to the highest position in 2010, “will be chairman and CEO for the last 10 years.”
He is the latest bank executive to show that he intends to continue to lead his institution rather than handing reins to his young successor.
JPMorgan Chase’s Jamie Dimon, 65, recently confirmed his desire to extend his term as CEO to 30 years.
July bank board Granted DimonThe “special award” for equity options, which has been JP Morgan’s chief since 2005, said it reflects their desire to continue to lead banks for “a significant number of years.”
According to the bank’s internal model, the option will be available from July 2026, and Dimon will have to hold shares until July 2031 to make a profit of about $ 49 million.
James Gorman, 62, told Morgan Stanley’s board that he promised to stay for at least three more years. However, according to someone who was briefed on his plans, he did not expect his tenure to exceed the next five years, at which point he would have been in that role for about 16 years. ..
Extension of the term of office of the CEO Collected criticism From corporate governance experts who claim that long-term leaders can have a hard time prioritizing new challenges.
And, as happened at JP Morgan, potential successors can rush and leave the bank. At JP Morgan, a series of executives who have tipped top jobs have left in recent years.
BofA’s management review will take place weeks after the second largest bank in the United States announces two senior leaders, Chief Operating Officer Tom Montag and Vice Chairman Anne Finucane.
Montag and Finucane had broad responsibilities during their time at the bank, but are now shared among other executives promoted in the remodeling.
Moynihan has expressed his desire to remain the chief of BofA until the end of the decade.
Source link Moynihan has expressed his desire to remain the chief of BofA until the end of the decade.