Bank of America (BAC) Pays Back TARP, But Can't Find a New CEO

December 15, 2009 11:55 AM EST
Pay and governance issues has led to the continuation of the 10-week search for the next CEO of Bank of America Corp. (NYSE: BAC).

Robert Kelly, CEO of Bank of New York Mellon Corp. (NYSE: BK), who was considered the leading candidate to take over for current CEO Ken Lewis said yesterday that he is no longer interested.

BofA has paid back the $45 billion in government bailout money, partly due to the want of being able to pay its executives the salary the bank sees fit with the restriction of the U.S. Treasury. However BofA was unwilling to provide the $20 million pay package that Kelly, 55, was seeking, according to a Wall Street Journal article today.

Kelly had also made it clear that he intended to pursue the BofA chairman position too; even though the bank's shareholders had said they wanted the two positions split up. It was also rumored that Kelly wanted to move the BofA headquarters to New York.

Kelly sent a memo out to employees of BNY Mellon stating what his future intentions are. "After talking with them (BofA), I firmly concluded that my place is here at BNY Mellon," Kelly said.

Now BofA will look closer at its Chief Risk Officer Gregory Curl or Brian Moynihan, the company's president of consumer and small business banking, people that are familiar with the matter said. According to the sources cited in the Wall Street Journal, there are no longer any outside candidates being considered.

Many investors have been clamoring for Ken Lewis to remain in the position, although Lewis contends he is done after this year.

Shares of BofA are down 2 percent to $15.34, while BNY Mellon are down by 0.50 percent to $26.92 in midday market movement.

You May Also Be Interested In

Related Categories

Insiders' Blog, Management Changes, Rumors

Related Entities

Bank of America, Ken Lewis

Add Your Comment