Bank of America managed to stamp a smiley-face on the conclusion of its drawn-out search for a new chief executive to succeed Kenneth Lewis. The choice of Brian T. Moynihan, an insider who currently heads BofA's consumer and small-business division, is presented in media reports as a stabilizing dose of continuity at a troubled time.
Another way of looking at it is, BofA was forced to choose between Moynihan and another longtime insider, Chief Risk Officer Gregory Curl, after several outside stars turned down overtures to be considered for the role.
Regulators and some investors were said to favor bringing in an outsider. However, aftereffects of BofA's very recent days as a ward of the U.S. Treasury apparently rendered that possibility moot. Restrictions on this year's compensaiton of its top 25 executives ordered by Treasury paymaster Kenneth Feinberg remain in place although Feinberg's authority over 2010 pay elapsed when the bank repaid its TARP aid just last week.
Robert Kelly, the CEO at Bank of New York Mellon Corp., reportedly turned down a $20 million offer to jump to BofA. He was one of at least five industry executives who rebuffed the board's overtures, according to Bloomberg News. And The Wall Street Journal reports that Moynihan's compensation in his new role as CEO not only wasn't disclosed, but "will be determined at a later date."
BofA Taps Moynihan as CEO [WSJ]
Bank of America Names Moynihan as Next Chief, Replacing Lewis [Bloomberg News]
Bank of America Stays In-House, Picks Brian Moynihan To Succeed Ken Lewis [AP, via Investment News]
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