Bank of America Corp updates
Sign up to myFT Daily Digest to be the first to know about Bank of America Corp news.
Bank of America’s chief executive Brian Moynihan signalled that he plans to continue leading the lender until the end of the decade, as he became the latest Wall Street boss to seek an extended tenure.
In a memo to employees, Moynihan, 61, announced a shake-up of the bank’s top ranks and said he had told the lender’s board of directors it would be his “privilege to serve with [the new team] as chief executive as we drive responsible growth through its second decade”.
A spokesperson confirmed that Moynihan, who was elevated to the top job in 2010, “is planning to stay as chairman and CEO through this decade”.
He is the latest banking executive to signal that he intends to keep leading his institution rather than hand the reins to a younger successor.
JPMorgan Chase’s Jamie Dimon, 65, recently confirmed his desire to extend his tenure as chief executive into a third decade.
The bank’s board in July granted Dimon, who has been JPMorgan’s chief since 2005, a “special award” of share options, which directors said reflected their desire for him to continue leading the bank for a “significant number of years”.
The options would become exercisable from July 2026 and Dimon would need to hold any shares until July 2031 to net a profit of about $49m, according to the bank’s internal models.
James Gorman, 62, has told Morgan Stanley’s board, that he is committed to staying on for 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, at which point he will have been in the role for about 16 years.
Extended tenures of chief executives have attracted criticism from corporate governance experts who argue that leaders who have been in the job for a long period of time can struggle to prioritise new challenges.
And potential successors can grow impatient and leave the bank, as has happened at JPMorgan, where a string of executives tipped for the top job have departed in recent years.
The management overhaul at BofA comes weeks after the second-largest US bank announced the departure of two of its most senior leaders, chief operating officer Tom Montag and vice-chair Anne Finucane.
Montag and Finucane had amassed a wide range of responsibilities during their time at the bank, which are now being divided among other executives elevated in the reshuffle.