Bank of America has appointed Dean Athanasia and Jim DeMare as co-presidents, signaling preparations for the eventual succession of CEO Brian Moynihan.
The announcement, made on Friday, also elevated Chief Financial Officer Alastair Borthwick to the role of executive vice president.
Moynihan Reinforces Commitment
In a letter to employees, Moynihan, 65, said the appointments will strengthen the company’s strategic efforts:
“Dean and Jim will work with me to drive broad-ranging, strategic initiatives that are central to our long-term success.”
Despite the leadership changes, Moynihan confirmed he intends to remain at the helm through the end of the decade. He has served as CEO since 2010, guiding the bank’s recovery following the 2008 financial crisis.
Analysts Highlight Challenges
Banking analyst Mike Mayo noted that while Moynihan’s extended leadership provides stability, the company faces mounting pressure to improve performance and boost its stock price. Areas highlighted for improvement include the corporate and investment banking arm, the private bank, and Merrill Lynch.
Bank of America shares have risen 15% so far this year, compared with a 28% gain for rival JPMorgan Chase. The broader S&P Bank Index has advanced around 20% during the same period.
A Three-Way Succession Race
The appointments set up what many observers see as a three-way contest to eventually replace Moynihan, with Athanasia, DeMare, and Borthwick emerging as key contenders.
Athanasia, 59, previously managed four of the bank’s eight major business segments, including retail banking, preferred banking, business banking, and global commercial banking. Retail operations remain Bank of America’s largest revenue driver, contributing about 42% in the second quarter.
DeMare, 56, currently leads the markets division, which is on track to post its 14th consecutive quarter of revenue growth. The division’s second-quarter revenue jumped 15%, helping the bank beat profit estimates.
Industry-Wide Leadership Watch
The succession discussions at Bank of America come as Wall Street closely monitors leadership transitions across major banks. Investors are also watching JPMorgan Chase, where CEO Jamie Dimon has led the nation’s largest bank for more than 19 years.
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