Bank of America’s most richly compensated executive, Thomas K. Montag, may become a future candidate for the top job after a shakeup elevated him to co- chief operating officer at the money-losing lender, Bloomberg reports.
CEO Brian T. Moynihan is counting on a new lineup to reverse the bank’s fortunes after he posted a record $8.8 billion quarterly loss, spent $30 billion to clean up faulty mortgages and sold $35 billion of assets and preferred shares to rebuild capital. The stock has lost more than half its value since Moynihan became CEO of the Charlotte, North Carolina-based company in January 2010.
“Moynihan knows he’s in the line of fire, he’ll do everything he can to save the bank,” said Greg Donaldson, chairman of Evansville, Indiana-based Donaldson Capital Management LLC, which oversees $500 million including Bank of America shares. “If for some reason he’s gunned down, he knows he has to have an heir apparent. Montag is a winner, a guy bringing dollars to the bottom line, and it would be hard for the board to throw him out, should the time come.”
The revamped team pairs Montag, 54, the head of global banking and markets, with David Darnell, 58, the co-COO who will supervise retail banking. It won’t include Sallie Krawcheck, who ran wealth management, and Joe Price, who led the retail unit. Both will leave the company, the bank said in a statement yesterday….
Learn more at http://www.bloomberg.com/news/2011-09-07/bank-of-america-s-shakeup-may-put-montag-in-contention-for-ceo-succession.html
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