Succession Speculation at Bank of America as CEO Brian Moynihan Eyes Continued Leadership
Bank of America (BofA) CEO Brian Moynihan has initiated what appears to be a succession planning process by naming a new leadership team. This move, however, coincides with Moynihan signaling his intention to remain at the helm until 2030, sparking debate on Wall Street.
Leadership Shakeup and Succession Planning
In a recent announcement, Moynihan appointed Dean Athanasia, head of regional banking, and Jim DeMare, head of global markets, as group co-presidents. This strategic move is widely interpreted as a setup for an eventual successor. Alastair Borthwick, the current chief financial officer, has also been promoted to executive vice-president, where he will serve as a strategic advisor.
“Over the last 15 years, Dean and Jim have each served as leaders, strategists, and stewards of growth,” Moynihan stated. “Together, they have nearly 60 years of experience in financial services across every client segment, market, function, and industry.” Of Borthwick, Moynihan commented, “His financial stewardship and broad leadership have been instrumental to our progress. Through his tenure as CFO, we have strengthened every major aspect of our balance sheet.”
Moynihan's Intentions and Wall Street's Concerns
Despite the leadership changes, the 65-year-old Moynihan emphasized his commitment to staying in the CEO role until at least the end of the decade. He took over as CEO in 2010, navigating BofA through the aftermath of the global financial crisis.
However, Moynihan's extended tenure plans have not been universally welcomed. Mike Mayo, a banking analyst at Wells Fargo, expressed concerns, stating, “It’s nice to want to continue as the CEO for five more years, but there’s increasing pressure to improve performance and stock price.” Mayo identified areas such as the corporate and investment bank, the private bank, and Merrill Lynch as needing improvement.
Internal Discontent and Potential Activist Involvement
Reported by The Post's Charlie Gasparino last October, internal rumblings among senior BofA staff suggest dissatisfaction with Moynihan's leadership style. Frustrated employees perceive his approach as overly conservative and risk-averse, particularly on the trading desk. This failure to adapt could potentially expose BofA to an activist investor takeover.
While BofA shares are up 15% year-to-date, they trail the 28% rise in shares of competitor JPMorgan Chase. The S&P bank index has gained 20% so far this year. Bank of America is scheduled to release its latest quarterly results on October 15th, preceding its 2025 investor day in Boston on November 5th.
