In 2013, then in his fourth year at the Bank of America, Brian Moynihan became the first official to reject Yale University’s “Legend in Leadership” award, saying he had just started a career.
“He thought he didn’t qualify yet, he thought the work was in progress,” said Yale School of Management professor Jeffrey Sonnenfeld, who presented Moynihan with the award, which he received in 2018.
Moynihan, 61, seems to see a lot of work to do at BofA. This month he mark that he wants to stay until 2030, and enters JPMorgan Chase leader Jamie Dimon in searching CEO for at least 20 years. Morgan Stanley chief executive James Gorman has also indicated he wants to remain at the company he has led since 2010 for at least three years.
In the last decade, CEOs of large US banks he did not leave often if he was not pressured. A false deal in connection with the sale toppled two CEOs at Wells Fargo, as Michael Corbat retired early after the bank offered to repay Revlon’s debt, resulting in millions of dollars in debt, debt, and bankruptcy.
Only Goldman Sachs’ Lloyd Blankfein decided to give up his ambitions when he handed over the reins to David Solomon in 2018 after 12 years at the helm. Choosing the right time to go can be difficult, he told the Financial Times.
“When things are going well you don’t want to leave but when things start to go awry you feel like you can’t leave,” Blankfein said. “You have to be punished to leave when you don’t want to leave.”
In contrast Dimon, a former financial officer who worked for American Express and helped form the Citigroup alongside Sandy Weill, Moynihan, a Rhode Island lawyer, is a prominent figure on Wall Street. He beat the internal and external fighters to replace Ken Lewis at BofA, and he has still worked longer than most spectators expect.
“Brian was not the expected winner and has always been amazed at what happened,” Sonnenfeld said.
Dimon, Moynihan and Gorman buck is a major trend in American retail. The temporary turnover of CEOs out of financial institutions within the Russell 3000 index decreased from less than 15 years in 2017 to seven years in 2020, according to a report by research firm The Conference Board.
Having a long life has its advantages – bank executives who have been working for more than a decade are gaining the necessary knowledge to run organizations that are often seen as too big to be able to afford.
It can also serve as a roadblock to promoting diversity among CEOs, the area left by Wall Street and other American companies. Jane Fraser sat down first wife running a major US bank earlier this year.
Banks have tried to address the lack of diversity at the top by encouraging more women to lower C-suite rooms, as evidenced by the changes in BofA and JPMorgan this year that have given greater responsibility to female supervisors.
“The only way to address the need for diversity is to do what Bank of America and JPMorgan have done, which is. . . Promote women in senior careers, “said Matteo Tonello, executive director of The Conference Board.
Another downside to long-term work is that the developers may get tired of the competition and choose to leave the company to do a big job somewhere, or threaten to quarrel with that CEO when their desire for recruits becomes apparent.
Weill said the reason Dimon left Citigroup at a difficult time was because he was patient enough to be promoted. “The problem was in 1999 he wanted to be CEO and I didn’t want to retire,” Weill told The New York Times in 2001. “I’m sorry it was done.
Patience seems to have taken over the management at JPMorgan, where a group of Dimon’s successors have left the bank and are now running out to other lenders. Jes Staley, now at Barclays, was promoted, as were Bill Winters at Standard Chartered and Matt Zames who moved to secret offices.
Moynihan’s goal of staying in BofA by 2030 was announced shortly before departure of Tom Montag, their chief executive who was once frustrated as the future CEO. But Montag, now 64, would have been in his 70’s if he had been hanged for the job, hindering him.
BofA said this month it is planning to increase the number of potential replacements for Moynihan in the changes announced by Moynihan. seven-page printing.
“This looks like a ten-year-old bakeoff, which could be an unpredictable history,” says John Coffee, a corporate management expert at the University.
Experts in corporate governance point out that lending problems such as BofA or JPMorgan are one of the main reasons for the existence of a central bank doubling the duration of a major downturn in the S&P 500. in managing the assets and liabilities of real estate up to the savings and commercial bank.
“Banking today is very different from banking in 2007,” said Marc Goldstein, US research chief at ISS.
In addition to the need for professionalism, high-profile banking operations have been growing politically in the last decade.
Bank officials are brought before Congress to testify, and they are expected to spend most of their time on economic and policy reforms. He is also frequently called by the media to address the global economic crisis.
“One of the duties of a bank manager in a crisis is to show confidence in the market so as not to be intimidated, so it may be best to have someone who has been through a marriage. [of] problems and who can show this positive atmosphere, “Goldstein said.