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Bank of America Corp.'s hunt for a new chief executive has slowed as board members find themselves evaluating a dearth of outside candidates, the Wall Street Journal reported, citing people familiar with the process.
The bank held a regularly scheduled board meeting Wednesday, but no decision on who will replace departing CEO Ken Lewis emerged. The board committee leading the search had hoped to bring its choice to the board by the meeting but needed more time, the Journal said.
A person close to the board told the Observer that the directors “want to do something sooner rather than later.” The search committee, led by bank chairman Walter Massey, is aiming to make a decision by next week, the Journal said.
Government agencies that regulate the bank aren't proposing candidates, but they will have an informal veto if they find the board's selection unacceptable, a source familiar with the situation told the Observer. Pay czar Ken Feinberg will review the pay package of the incoming CEO.
Lewis has been under legal and regulatory fire for his Jan. 1 purchase of Merrill Lynch & Co., but he apparently surprised the board with his decision last month to step down at year's end. The 62-year-old has spent a four-decade career at the company and has been CEO since 2001.
The six-member search committee is dominated by former FleetBoston Financial Corp. directors, which has raised concern about whether the next CEO will be committed to the bank's hometown of Charlotte. The committee has hired recruiter Russell Reynolds Associates to assist with the search.
The leading internal candidates are consumer banking head Brian Moynihan, 50, and chief risk officer Greg Curl, 61. Moynihan joined the company with its 2004 Fleet acquisition and is well liked by the former Fleet directors who stayed on Bank of America's board.
Some large investors and analysts have pushed for an outside candidate. BlackRock CEO Larry Fink has gained buzz as someone who might be in the running. A person close to Fink said he hadn't been contacted about the job and wouldn't be interested. Bank of America owns a nearly 50 percent stake in BlackRock through its Merrill acquisition.
There have also been murmurs about a former Citigroup Inc. executive, Ajay Banga. But he just started a new job at MasterCard Inc. on August 31, as president and chief operating officer. MasterCard spokesman Chris Monteiro said there's “no truth to these rumors” about Banga. “He's here at MasterCard and enjoying the opportunities with the team here,” Monteiro said.
Other investors favor former Bank of America chief financial officer Al de Molina, now CEO of GMAC Financial Services, but he may be running into resistance inside the bank. He has recruited a number of executives away from Bank of America to GMAC. Another former Bank of America CFO, Jim Hance, is also seen as a possible candidate, but it's not clear whether he has been approached by the board.
