Bank of America CEO Brian Moynihan has announced the most comprehensive management overhaul in his 12-year tenure at the giant financial institution.
In a memo distributed to employees on Friday, Moynihan appointed a new chief financial officer, chief technology officer, general counsel and chief executive officer. He said the company’s management team has added five new members.
Moynihan said in the 2,249-word memorandum: “These changes position the company with very energetic leaders who are committed to driving responsible growth in its second decade – to deliver to our customers, communities and shareholders, and to deliver key social benefits. To solve the problems. “As I share with our Board of Directors, it will be a privilege for me to work with him as CEO as we continue to drive responsible growth throughout his second decade. “
This decision reinforces the Moynihan position as the leading bank of America, the second US bank by assets. Moynihan took office in 2010, first stumbling into the depths of the financial crisis with the gargantuan task of cleaning up the mess left by his predecessor’s acquisition of mortgage lender Countrywide Financial. She has since stabilized the ship, reduced costs and improved yields.
The redesign comes weeks after the company announced the departure of COO Tom Montague, who was widely seen as the prime candidate to replace Moynihan if needed. According to a person familiar with the company, there is no imminent need to appoint another COO.
Instead, many division heads that used to be Montag now report directly to Moynihan. These include Jim Demare, who continues to head the company’s global business operations, and Matthew Koder, who continues to head the global merchant and investment banking division.
Moynihan said Alistair Borthwick, a former Goldman Sachs executive who recently headed the World Commercial Bank, will replace Paul Donofrio as CFO in the fourth quarter. Donofrio, who served as CFO for six years, will become the bank’s vice president and oversee the bank’s sustainable finance efforts.
This story is developing. Please check for updates.
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