(Editor’s note: This column solely reflects the author’s views. Any hints of sarcasm are protected by safe harbor and are not intended to offend or misinform.)
A Bold Appointment in Tumultuous Times
In a largely unexpected move that signals significant change, Bank of America (BofA) announced today the appointment of former Citi CFO and practice head, Sallie Krawcheck, as the bank’s new leader in charge of global wealth and investment management. This decision came at a time when observers and compensation experts were already eagerly tuning in along the New York-to-Charlotte corridor for what they dubbed the original “red rover” request—a covert conversation reportedly exchanged this morning between BofA CEO Ken Lewis and Citi CEO Vikram Pandit.
The Power of Failing Up
The appointment of Krawcheck highlights the phenomenon often referred to as “failing up” in an industry that has been struggling since well before last year’s market collapse. Krawcheck will join a senior team that includes at least three serious contenders for the eventual replacement of CEO Ken Lewis—whether he departs on his own accord or is nudged out by the board remains to be seen. Although there is no set timetable, Lewis himself has previously hinted that the CEO job isn’t exactly enviable under the current conditions. According to sources—humorously noted as their personal bartenders—neither Lewis nor BofA board Chairman Walter Massey were available for comment.
Boardroom Shake-Ups and Government Influence
Chairman Massey continues to swiftly and deftly reshape the board’s composition, reportedly at the behest of the Obama administration. His ability to do so, without relying on the major executive search firms, challenges conventional wisdom. This leads to pressing questions: What role did the government play in the selection of Krawcheck? Was her appointment due to her past performance, extensive industry experience, or perhaps even an unexpected connection to prominent political figures like Obama or Geithner? Moreover, what will her compensation be relative to her previous package at Citi? Bonus watchers at both leading financial institutions are anxiously awaiting details.
A Sign of the Times at BofA
Krawcheck’s new role as head of what remains of Merrill Lynch within BofA also sends a signal of an internal tug-of-war for the top spot at the bank. Although the eventual CEO candidate is still unclear, one thing is evident: the forthcoming leadership transition will likely mirror the status quo rather than heralding a radical departure.
Elsewhere in Corporate America
In other developments:
AIG has named a former MetLife CEO to replace its outgoing leader, Edward Liddy, who once managed AllState.
Apple has decided it’s time for Eric Schmidt, the CEO of Google, to exit its boardroom. Rumors suggest that Liddy might be his replacement, though confirmation remains pending amid light-hearted speculation about board room tech mishaps—such as iPods that refuse to work.
Conclusion
As the corporate world continues its perpetual cycle of change and continuity, one thing remains constant: the more things change, the more they stay the same. With leadership reshuffles and new appointments emerging, the industry braces itself for another round of what might seem like the same old song and dance. Captain Weill, more yacht steam—it appears it’s time to return to port.