Bloomberg reported Tuesday morning that the Bank of America (NYSE: BAC) board of directors has expanded its search for the bank’s next CEO to include people who want to live and run the company from New York, not its current headquarters in Charlotte. Why is a firm that has been rooted in the Charlotte skyline willing to venture into changing the company so drastically? Essentially, the talent pool is sparce for executives willing to relocate there.
When current CEO Ken Lewis announced in September his retirement effective in December, some observers immediately fretted about the bank’s future in Charlotte, which does seem to have merit. Afterall, the empire’s crown jewel is on Wall Street, Merril Lynch.
BofA is a national leader in retail banking, credit cards, mortgages and wealth management. But its diverse business is also geographically scattered. While this may be a good strategy from a Continuity of Business Perspective, it lacks the structure that it’s competitors have. The mortgage business (formerly Countrywide Financial) is based in Calabassas, California. The Credit cards division are based in Wilmington, Del., the former home of MBNA. And Merrill Lynch, the bank’s powerful brokerage and investment banking operation, is based in New York. Currently, the dispersed offices resemble more of a holding company pattern, than one cohesive corporation.
1. Al de Molina – Currently CEO of GMAC Financial Services since April 2008. Mr. de Molina spent the previous 17 years at Bank of America Corp. which included positions as Chief Financial Officer succeeding Mr. Hance, and as CEO of Bank of America Securities.
2. Jim Hance – Currently Chairman of Sprint Nextel. Mr. Hance served as Chief Financial Officer for Bank of America from 1988 until April of 2004. He also served as Vice Chairman of Bank of America from 1993 until January 31, 2004. He currently serves on the boards of Duke Energy Corp., Morgan Stanley, Cousins Properties, and Rayonier Corporation.
3. William S. (Bill) Demcheck – Appointed Senior Vice Chairman of PNC in February 2009. Joined PNC as Vice Chairman and CFO in 2002. Responsible for middle market and large Corporate & Institutional Banking and asset / liability management and equity management issues. He is a director of Blackrock. Significant background in risk management. From 1997 to 2002 he was head of Global Structured Finance and Credit Portfolio at J.P. Morgan.
4. Richard K. Davis – President (2004) and CEO (2006) and Chairman (2007) of US Bancorp. Mr. Davis was Vice Chair of US Bancorp since Feb. 2001 merger of Firstar and US Bancorp. Responsible for consumer banking and retail payment systems.
5. Edward “Ned” Kelly – currently second in command at Citicorp as Vice Chairman and head of strategy and M&A. Formerly CFO of Citibank and head of Global Banking and Private Bank. Previously a Managing Director at Carlyle Group, and former Chairman, CEO and President of Mercantile Bancshares from 2001 -2007. Prior to that he was a senior investment banker at JP Morgan and partner at Davis Polk & Wardwell. Age 55.
6. Charles W. Scharf – Currently Chief Executive Officer, Retail Financial Services at J. P. Morgan since merger with Bank One. Responsible for integration of WAMU acquisition. Prior to Bank One merger, he had been head of Retail Banking since May 2002, and CFO at Bank One since June 2000. Prior to Bank One, he was CFO at Citigroup Global Corporate and Investment Bank. Age 43.
7. Arkadi Kuhlmann – Chairman and President, ING Direct, USA. Mr. Kuhlmann has been the leader of ING Direct’s entry into the United States. In nine years, he has grown ING Direct to $90 BN in total assets with 7.7 million customers. Prior to ING, he was President North American Trust and CEO of DEAK International.
8. John J. Mack – Current CEO and Chairman at Morgan Stanley. Has announced retirement effective January 1, 2010. At Morgan Stanley since 1972. Became President in 1993. Left in 2001 after power struggle with Phil Purcell after Dean Witter merger. Became CEO at First Boston to turn around. Returned to Morgan Stanley in 2005. Age 65.
9. Bill Winters – Co-Chief Executive of investment banking at J.P. Morgan from 2004 to 2009. Ran credit and trading operations of J.P. Morgan during 2008-09 credit crisis. At J.P. Morgan since 1983. Deeply involved in integration of J.P. Morgan and Chase, and also Bear Stearns and J.P. Morgan. Age 48.
10. Eugene (Gene) M. McQuade – Currently CEO of Citibank, N.A. (banking division) since July 2009. Prior to that he served as President of Merrill Lynch’s U.S. bank, since February 2008. President and CEO of Freddie Mac from 2004 to 2007, and was CFO from 2006 to 2007. He was President of Bank of America from April 2004 to June 2004 and was President and Chief Operating Officer of FleetBoston Financial from 2003 to 2004. Chief Financial Officer of FleetBoston Financial from 1997 to 2003. Joined Fleet Financial in 1992 as CFO. Age 60.
11. John Kanas – currently CEO of private equity buyout of failed Bank United (Fla). Investor group includes WL Ross & Company, Carlyle Group, Blackstone and others. Former Chairman, CEO North Fork Bank, which sold to Capital One in December 2006.
12. Alfred Kelly – Currently President of American Express (since 2007). Slated to leave on April 10, 2010. Joined American Express in 1987 and was responsible for consumer and small business franchise. Also serves as director of MetLife, Inc. Age 51.
13. Michael E. O’Neill – Currently Director Citicorp, and member of Audit & Risk Committees. Formerly Chairman and CEO, Bank of Hawaii and Pacific Century Corporation from 2000 – 2004. Former Vice Chairman and CFO of original CA based Bank of America. After merger with NationsBank in 1998, left in 1999 to become CEO of Britain’s Barclays PLC, but resigned in 2000 due to illness. He has recovered his health. Age 63.
14. Rich D. Fairbanks – currently Chairman, Chief Executive Officer, Capital One since 1994. Signet Bank 1988 – 1994. Key innovator in consumer credit area in building Capital One. Age 58.
15. Jerry Grundhoffer – Currently director at Citicorp. Former CEO and Chairman of U.S. Bancorp from 2001 to 2006. Chairman until 2007. Became President of Star Bank in 1993 to 1998 when merged with Firstar. At Security Pacific / Bank of America before 1993. Age 64.
16. Tony Terciano – currently Chairman of Sallie Mae since January 2008. Chairman Riggs National Bank 2004-2005, Chairman, Dime Bank 2000-2002, Prior to 2000, President First Union, Chairman & CEO First Fidelity Bancorp, President Mellon Bank Corp.
17.Gerald J. Ford – Chairman and formerly CEO of First Acceptance Corporation (NYSE:FAC). Former Chairman and CEO of Golden State Bancorp, San Francisco. Sold to Citicorp in 2002 for $6 BN. Well known entrepreneur and banking turnaround specialist who specialized in buying distressed and rural banks. Age 65.
18. David W. Nelms – Currently Chairman (2009) and CEO (2004) of Discover Financial Services. He has been an officer of Discover Financial since 1998. Prior to appointment at Discover, he was Vice Chairman at MBNA America Bank (1991 – 1998). He held prior positions at Progressive Insurance, Bain & Company and G.E. Corporation. Age 48.
While each candidate has pros and cons, clearly, the choice is critical – otherwise, BAC may find themselves in the situation Citigroup experienced with Chuck Prince. The world’s largest bank needs a CEO capable of dealing with the challenges that brings, and it will be quite interesting to see who emerges in the coming weeks.
