How long will it be before a scandal breaks out with the new guy
Bank of America names Brian Moynihan as new CEO
AP
CHARLOTTE, N.C. – Bank of America's board of directors chose consumer banking chief Brian Moynihan to replace Ken Lewis as CEO on Jan. 1.
Their pick of an internal candidate on Wednesday followed unsuccessful attempts to hire a star industry executive for the top job at the nation's largest bank. Those negotiations were stymied by restrictions imposed by government pay czar Kenneth Feinberg that would have forced an outsider to take a big pay cut this year.
The move "draws to a close what is probably the executive search from hell," said Tony Plath, a finance professor at the University of North Carolina at Charlotte. "They needed to find someone to end the drama so that the bank can get back to regular business, but at the same time I am surprised by their choice."
Moynihan, 50, joined the Charlotte, N.C.-based bank as part of its 2004 purchase of FleetBoston Financial Corp. Over the past year he has served as BofA general counsel, head of global wealth management and consumer bank chief.
"I am honored to have the opportunity to lead this important company," Moynihan said in a statement. "We have everything we need at Bank of America to be the best financial services company in the world. What we need to do now is very simple. We need to execute."
The new CEO faces many daunting tasks. He must juggle regulatory investigations into the bank's 2008 acquisition of Merrill Lynch while trying to repair relationship with regulators and members of Congress who sharply criticized Lewis after the bank required $45 billion of federal bailout loans to prevent its failure.
"Brian's wide range of experience, his relationships inside and outside of the company, and his demonstrated ability to understand business dynamics and effect constructive change made him the best person for the position," said Dr. Walter E. Massey, chairman of Bank of America, who led the CEO search.
Moynihan also will join the bank's board of directors.
Lewis, 62, announced his departure in September in a move that surprised Bank of America's board and left it scrambling for a replacement with no clear succession plan in place. Before then, Lewis had promised he would remain as CEO until the bank cleared up its financial problems.
One thing Moynihan doesn't have to worry about is repaying the government loans. The bank received $25 billion from the government's Troubled Asset Relief Program, or TARP, as part of the initial round of investments into hundreds of financial institutions when the credit crisis peaked last fall. It then received an additional $20 billion shortly after it acquired Merrill Lynch in what was a heavily scrutinized deal.
Bank of America repaid the money it received from TARP on Dec. 8. That freed the bank from the government restrictions that had hampered its search for a new CEO, including executive pay limitations. However, its negotiations with outside candidates continued to falter.
Bank of New York Mellon Corp.'s CEO Robert Kelly told employees Monday that he wasn't going anywhere, leaving BofA with one less candidate for its top job. Media reports had listed Kelly among the top choices to lead the bank.
Other candidates reportedly had included: Bob Diamond, president of British bank Barclays PLC; Larry Fink, CEO of asset manager BlackRock Inc.; and New Jersey Gov. Jon Corzine, a former Goldman Sachs chairman and CEO.
Massey said Wednesday that while the bank did consider external candidates, the board decided that Moynihan's experience was as good or better, "and he offered the advantage of a smooth transition."
By picking someone from within, "you express an ability to create a culture that can produce leaders and that's very important," said Keith Springer, president of Sacramento, Calif.-based Capital Financial Advisory Services, which owns financial stocks.
"It's important for these companies to show they have longevity," he said. "And if you can't breed leaders, then you can't survive."
Here is some more info on Bryan as well as his compensation package for 2007...YIKES... imagine what he will be paid in 2010
Brian T. Moynihan
President, Global Banking and Wealth Management
Bank of America Corporation
Charlotte , NC
Sector: FINANCIAL / Money Center Banks
Officer since April 2004
49 Years Old
Brian T. Moynihan, age 49, President, Global Banking and Wealth Management. Mr. Moynihan was named to his present position in January 2009. From December 2008 to January 2009, he served as General Counsel. From October 2007 to December 2008, he served as President, Global Corporate and Investment Banking. From April 2004 to October 2007, he served as President, Global Wealth and Investment Management. Previously he held the following positions at FleetBoston Financial Corporation: from 1999 to April 2004, he served as Executive Vice President, with responsibility for Brokerage and Wealth Management from 2000 and Regional Commercial Financial Services and Investment Management from May 2003. He first became an officer of the Corporation in 2004. He also serves as President, Global Banking and Wealth Management and a director of Bank of America, N.A., FIA Card Services, N.A. and Countrywide Bank, FSB and as Chief Executive Officer of Merrill Lynch & Co., Inc.
Forbes Rankings
Bank of America - 38th on the Forbes Global 2000 in 2009
Bank of America Forbes 400 Best Big Companies in 2008
Bank of America - 3rd on the Forbes Global 2000 in 2008
Bank of America Forbes 400 Best Big Companies in 2007
Bank of America - 2nd on the Forbes Global 2000 in 2007
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Compensation for 2007
Salary $718,859.00
Bonus $0.00
Restricted stock awards $4,774,351.00
All other compensation $66,556.00
Option awards $ $2,138,788.00
Non-equity incentive plan compensation $2,270,000.00
Change in pension value and nonqualified deferred compensation earnings $135,720.00
Total Compensation $10,104,207.00
