Bank of America Corp. is preparing a shake-up of its senior leadership as it looks to narrow the pool of potential successors to Chief Executive Officer Brian Moynihan, Bloomberg reported, citing people familiar with the matter.
The discussions reportedly include expanding the responsibilities of Jim DeMare, 56, who currently oversees the bank’s trading operations, along with promotions for other senior executives. A spokesperson for the bank declined to comment.
The move comes as Moynihan, one of the longest-tenured CEOs among major U.S. banks, has expressed his intention to remain in the role through the end of the decade. Since becoming CEO in 2010, Moynihan has steered the firm through the aftermath of the 2008 financial crisis. However, after 15 years in the position, the bank has yet to publicly signal any clear succession plan, even as its stock performance continues to lag behind competitors.
Over the past year, Bank of America’s shares have underperformed all its major rivals. Since the Federal Reserve’s rate-hike cycle began in early 2022, the bank has been the worst performer among the largest U.S. banks, returning 34%, while peers have gained at least 78%.
This leadership reshuffle follows the last significant senior management change when then-Chief Operating Officer Tom Montag departed the company. Montag, who also oversaw the investment banking division, later joined the board of Goldman Sachs Group Inc., a key competitor. Since his departure, responsibilities have been divided between executives including Jim DeMare and Matthew Koder, who heads the bank’s dealmaking business.
Additionally, the firm plans to hold an investor day in November — its first in several years. Chief Financial Officer Alastair Borthwick recently addressed the motivation behind the event, stating at a conference earlier this week, “I think the most important thing from our perspective is we feel like we’ve got an opportunity to close a relative value gap. We’re not entirely satisfied as a management team with where we stand right now on relative value. We feel like we’ve got a lot of growth opportunities across the various lines of business.”
The leadership adjustments and upcoming investor outreach are seen as strategic moves to strengthen the bank’s long-term positioning and build confidence among shareholders and stakeholders, amid intensifying competition and market pressures.
