Big banks don’t really need any more #PRFail moments. It’s not like they have earned the public’s trust since the stock market crashed a few years back.
Many would argue they haven’t even tried, but that’s another story.
Bank of America has been one of the most vilified since those dark days of the savings & loans hubbub, and their CEO and chairman’s recent comments aren’t helping with the bank’s reputation.
Two months ago, Brian Moynihan watched two of his top officials leave their offices, cardboard boxes filled with Successories, bookends and Montblanc pen sets. Two large shareholders, owning roughly $1 billion worth of Bank of America stock, wrote a letter saying they didn’t think Moynihan, who took over as CEO in 2010, also deserves to be chairman.
Moynihan was spared, so he’s been reflecting upon his business for the past two months. That moment of introspection has not proven to be a good thing for the rank-and-file.
“Headcount continues to work its way down in our company,” Moynihan said in an interview with Bloomberg TV earlier today. “That’s the expense mantra that we all talk about.”
“When someone’s job comes up and someone leaves for whatever reason … we basically say do we need to replace the job?” Moynihan said. “A lot of jobs you do and a lot of jobs you don’t.”
According to Business Insider, Moynihan pegged Bank of America’s personnel costs at about 60 percent of its overall spending. Well, yeah. It’s kind of a big company, but he thinks the custodial team and tellers aren’t “that” necessary.
Tell us, Mr. Moynihan, how much do you make again? Oh, that’s right — $14 million. Per year. So, what percentage of that is in that 60 percent? And what jobs do you do?
Welp, there’s another one of those moments we discussed.