Robert Kelly won’t become Bank of America CEO
Written on December 15, 2009
Bank of America, one of the top five banks in the Raleigh-Durham market, doesn’t have its man after all. Robert Kelly, the CEO at Bank of New York Mellon, has told his employees he intends to stay put. In a company-wide memo, Kelly told his staff that he was approached by another bank, but decided to stay at BNY Mellon (NYSE: BNY Mellon).
Here’s his memo, obtained this evening by the Charlotte Business Journal:
To: All Employees
From: Bob Kelly
Subject: My Continuing Commitment to BNY Mellon
Given some of the press reports we have seen in recent weeks, I wanted you to know – and to hear from me directly – that I’m not leaving BNY Mellon and I look forward to working with all of you to make this great company even stronger.
As you may know, I was approached by another bank as part of their CEO search process. It’s not an opportunity that I sought. After talking with them, I firmly concluded that my place is here at BNY Mellon.
This is a fantastic company. The people of BNY Mellon are second to none, and the opportunities for our company in the years ahead are outstanding.
We’ve all worked hard together to make this company a global leader and have accomplished some extraordinary things. We have terrific growth prospects globally, the best client service in the industry and a strong capital position. I look forward to continuing to work alongside all of you to serve our clients and to create the next chapter of our company’s tremendous story payday loan.
Bob
Pay was an obstacle
Kelly’s decision to resist BofA’s overtures is apparently the second time he’s told the Charlotte-based bank "No." Kelly reportedly turned down interest from the bank in October, too.
The Wall Street Journal reported early Monday that Kelly and BofA were at odds over a pay package. It’s unclear if that was the reason behind his decision to cut off talks.
It’s clear BofA (NYSE: BAC) had strong interest in Kelly, a former Wachovia CFO. And some analysts speculated that Kelly-BofA negotiations were rekindled since BofA recently repaid $45 billion in taxpayer bailouts, a reason some bank executives have backed away from the opening.
But now the bank must continue its search for its next leader as time runs out on current CEO Ken Lewis. He is scheduled to retire on Dec. 31.
The bank is believed to still be considering internal executives Greg Curl and Brian Moynihan as possible successors. But there’s also pressure from some investors for the bank’s board to hire an outsider.
Bank of America officials did not immediately return calls seeking comment.
Filed in: finance.