When Bank of America CEO Kenneth Lewis announced his resignation in October 2009 shortly after the board stripped him of the chairman’s role, scrutiny of the TARP-recipient bank intensified. “The board never appointed an interim CEO—Lewis was driving the agenda,” says Beverly Behan, founder of Board Advisor. “Bank of America had candidates, but they didn’t look in control.”
Brian Moynihan’s appointment after a search process covered almost daily by the press, raised speculation about how the board reached its decision. “There were [board members] who could have stepped in and become interim CEO,” opines Behan.
Gregory Carrott, a partner at Cavoure, a Chicago-based executive recruitment firm, says boards’ choices may be limited as a result of the search firm: “The board chose Russell Reynolds for the search—they probably have the largest pool of potential candidates than any of the other search firms.” Depending on its clientele, certain candidates may have been off limits, he says.
“I think BofA was shooting to get an experienced CEO,” says James J. Drury, chairman and CEO of James Drury Partners. “You’ve got x number of clients available…and their decision depends on how many clients are ‘reserved’ by other firms.”
While the selection process may not have portrayed the company in the best light, choosing a BofA insider has its advantages. Moynihan first joined the bank when it acquired Boston’s Fleet Bank in 2004. “He’s ‘inside’ with some ‘outside’ perspective,” says Behan.
“Leaving a legacy, making a real difference—that seems to be lost,” reflects Carrott. “You’ve got one of the world’s largest banks [to lead]; if you do a good enough job, you’re going to be remembered in business schools for years. How many bankers ever get that chance?”
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