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.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.

There’s a LOT to celebrate!

It’s National Pumpkin Spice Day, the last day of our fall fundraiser, and thousands of fans like you have invested in Marketplace.

You inspire us, and your support makes us stronger, especially now.