B of A still needs to find new CEO

Jeremy Hobson Dec 8, 2009
HTML EMBED:
COPY

B of A still needs to find new CEO

Jeremy Hobson Dec 8, 2009
HTML EMBED:
COPY

TEXT OF STORY

Bill Radke: The latest bank to announce its repayment plan is Bank of America. B of A’s board meets later today, and Marketplace’s Jeremy Hobson says board members have lots to talk about.


Jeremy Hobson: With less than four weeks until Bank of America’s CEO Ken Lewis steps down. A bank spokesman says it’s a pretty good bet that his successor will be discussed at today’s meeting. That successor has yet to be named.

Jamie Peters: So the bank has had to do a lot of searching, both internally and externally. And from the rumors we’ve been hearing, it hasn’t been going at all well.

Jamie Peters is a banking analyst at Morningstar. She says the repayment of the $45 billion TARP loan will help — because the bank will be able to offer its new CEO a better salary.

Peters: With the repayment of the $45 billion of TARP, they no longer are going to have that extraordinary aid from the government — which means the pay czar will not be sitting at the table when they discuss the pay package of the new CEO.

Still, Peters says the bank’s board faces an unenviable task: finding a CEO who can run the nation’s largest bank and navigate the corridors of power in the nation’s capital.

In New York, I’m Jeremy Hobson for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.