Background
Brian T. Moynihan has been the CEO of Bank of America since 2010. He has previously served as President of Bank of America's Global Wealth and Investment Management from 2006 to 2008 and was part of the senior management team responsible for leading the largest financial services firm in the world. Bank of America is a multinational financial services company whose primary services include consumer banking, corporate banking, wealth management, investments, and global banking.
Bank of America has had some ups and downs since Moynihan became CEO in 2010, but the board of directors has decided to re-appoint him for a 10th consecutive term. This decision was made in light of the company's sustained success over the past decade under his leadership, including stock price doubling and closing in on record revenue and earnings. However, not everyone is happy with the decision.
Analysis
The Board of Directors of Bank of America have re-appointed Brian T. Moynihan as CEO for a tenth consecutive term, a clear sign of their satisfaction with his performance as the head of the company. The decision was likely motivated; in part by Moynihan's record of success since taking on the role in 2010. During his tenure, Bank of America's stock price has more than doubled and the company is now close to record levels of revenue and earnings. Clearly, Moynihan has had a hand in leading the company to new heights over the past decade.
The decision also reflects the current state of the banking industry. This is an environment of low growth, low rates, and higher regulations, making Bank of America's success all the more impressive. Furthermore, even in the face of economic headwinds, the company has maintained its position as the second-largest bank in the nation by assets.
Despite Moynihan's clear ability to lead the company to impressive heights, the re-appointment is not without its critics. Some have argued that the decision rewards mediocrity and ignores potential outside candidates who could bring fresh perspectives and innovative visions to the table. Furthermore, as the leader of a financial services firm, Moynihan is held to a higher standard than many other CEOs. While his track record is certainly impressive, there are still those that are unwilling to look away from his involvement in, or potential negligence of, some of the bank's more controversial actions over the years.
At the end of the day, Bank of America's Board of Directors placed their trust in the performance of Brian T. Moynihan as CEO and have re-appointed him for a tenth consecutive term. His accomplishments in the decade since taking office are clear, raising the stock price and leading the company to record revenue and earnings. Furthermore, the current state of the banking industry, compounded with the stricter regulatory measures, only highlights the success of his leadership. While there is no doubt the decision has its critics, his tenure is reason enough for the board to have confidence in his ability to continue to lead Bank of America in the years to come.
