Bank of America names new CFO in leadership shake-up

Bank of America has appointed a new chief financial officer as part of a broader shake-up of its management team.

The roster shuffling, announced Friday, is the most prominent management makeover at the $3 trillion-asset company since the 2008 financial crisis. The changes come with an eye toward increasing diversity at the top of the bank as three women have been promoted to the executive leadership team.

“Our management team going forward will include individuals with many years of outstanding leadership in our company and the industry, increased global and international expertise, and more diversity of gender and race than ever before in our history,” Chairman and CEO Brian Moynihan said in an internal letter released Friday.

Paul Donofrio, who has been chief financial officer for the past six years, will transition to a new role overseeing the sustainable finance business along with investments in minority depository institutions and private equity funds. Succeeding him as CFO will be Alastair Borthwick, who has been president of global commercial banking for the past nine years.

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The change is expected to be formally made in the fourth quarter, Moynihan said in the letter.

Among the women promoted to the top management team is Lauren Mogensen, who was named global general counsel. She had been head of compliance and operational risk, where she had been working with regulators around the world. Mogensen will replace David Leitch, who Moynihan recruited six years ago to be the company’s top attorney. Leitch plans to retire next year.

Moynihan also promoted Holly O’Neill to president of retail banking. O’Neill had been chief client care executive and head of consumer client services where she oversaw the bank’s contact centers.

Wendy Stewart was promoted to president of global commercial banking. Stewart had been co-running the commercial banking business in the southeast and was overseeing the wholesale credit strategy.

Katy Knox will also be on BofA’s management team and remain in her role as president of the private bank.

Their promotions come after Vice Chairman Anne Finucane announced in August that she would be retiring and taking an advisory role at the bank. Chief Operating Officer Thomas Montag announced at the same time that he was retiring.

Moynihan also promoted Cathy Bessant to become vice chair of global strategy. Bessant, who had been the chief technology and operations officer, will relocate to Paris where she will work with the company’s boards in Europe.

Aditya Bhasin will become the new chief technology and information officer. Bhasin had been in charge of the online and mobile banking apps, along with payments and commerce services as chief information officer.

Tom Scrivener was named chief operations executive, where he will in part be overseeing forgiveness of Paycheck Protection Program efforts. He has held a number of positions at the bank, including being charged with running the Comprehensive Capital Analysis and Review stress tests.

Along with Borthwick, Bhasin and Scrivener, a handful of executives will also be new reports to Moynihan, including Matthew Koder, the president of global corporate and investment banking; Jim DeMare, president of global markets and global commercial real estate; Bernie Mensah, CEO of Merrill Lynch International; Steve Boland, who was named chief administrative officer and will oversee the market presidents; and Bruce Thompson, vice chair of wholesale credit.

The company also announced Friday that Andrea Smith, its chief administrative officer since 2016, will retire at the end of this year after 34 years with BofA and its predecessor companies. In retirement, Smith plans to create and chair a new alumni council that will be focused on connecting and engaging BofA retirees and former employees as clients, advocates and community leaders, the company said.