So, looking through an ESG lens, Bank of America has seen the light? On a one-, three-, five-, 10-year stock price performance basis, we have produced for the shareholder at the same time weve produced for our communities and our employees and our customers. Employees also play an important role driving corporate activism. Assistant Professor of Management, Indiana University. You regularly award stock to rank-and-file employees at a cost of $3.3 billion so far and your hourly minimum wage is now $21, up from $15 in 2017. Once popular opinion hit the halfway point, however, a lot more companies including ones led by conservative CEOs begin speaking out in favor. Bank of America CEO Brian Moynihan has pushed an environmental, social and governance agenda since taking over in 2010. If you make metrics part of the official sector, then you can see whos making progress. Brian Moynihan, chief executive officer of Bank of America Corp., during a Bloomberg Television interview on day three of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday, Jan. 19 . Copyright 2023 United Press International, Inc. All Rights Reserved. Edwards & Angell Staff Attorney (1984-1993) article ul li { list-style: disc; padding: 5px 0; } The researchers also looked at how CEO political preferences differ by geography, based on the location of the company headquarters. The debate over same-sex marriage is a good case in point. Our diverse supply chain buying produces contracts for diverse suppliers, $2 billion-plus a year now. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation ("Investment Banking Affiliates"), including, in the United States, BofA Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and Members ofSIPC, and, in other jurisdictions, by locally registered entities. April 23 (UPI) -- There's a growing rift between corporate America and the GOP -- two groups that have long been bedfellows. Brian Thomas Moynihan (born October 9, 1959) is an American investment banker, businessman and the chairman and CEO of Bank of America. We are saying a flight that our investment banker or our commercial banker takes is a cost. Rather, the GOP seems to be doing the drifting, not only from corporate America, but the American public as well. But corporate America isnt necessarily moving away from the Republican Party and toward the Democrats. "[15] It was later reported that the failed fee plan led to a 20% increase in account closures during the last three months of 2011. But corporate America isn't necessarily moving away from the Republican Party and toward the Democrats. In 2012, Moynihan was one of the CEOs who were criticized by Senator Bernie Sanders, who was taking aim at what he called corporate tax dodgers. Essentially, Sanders was displeased that Bank of America didnt just pay no income tax but also received $1.9 billion in a tax refund for 2010 even though said corporation had made $4.4 billion in profit in that same year. Member of the Board of Countrywide Eventually, Moynihan went to work as a lawyer in the financial sector. That is, they seem to believe its simply the right thing to do. growing rift between corporate America and the GOP, dozens of other states working on their own measures, signed a statement printed in The New York Times, backed out of throwing the ceremonial first pitch, NCAA will not hold events in states that discriminate against trans students, MLB moves All-Star Game, draft out of Georgia after voting restrictions, Corporate taxes as a share of U.S. gross domestic product, denounced so-called religious freedom laws, his travel ban from Muslim-majority countries, White supremacist rally in Charlottesville, means his or her political leanings can filter into business decisions, companies are responsible to shareholders first and foremost, demonstrates that liberal executives tend to pay more attention, are less likely to reduce their workforce, are more likely to concede to activists' demands, increasingly say CEOs have a responsibility to speak out, signed a statement supporting voter rights. Im just trying to get the work done. Moynihan also didn't seem overly concerned that any geopolitical tension between the US and China stemming from the recent spy balloon incident will have a lasting impact on the global economy.. We have a more stable workforce. 6 on the company's proxy statement, which requests the . His Credibility Was Called into Question in 2011, 10. Opinions or ideas expressed are not necessarily those of Bank of America nor do they reflect their views or endorsement. Copyright 20102023, Academic Journalism Society, Bank of America CEO Brian Moynihan, left, has said companies need to do whats right., growing rift between corporate America and the GOP, dozens of other states working on their own measures, signed a statement printed in The New York Times, backed out of throwing the ceremonial first pitch, Corporate taxes as a share of U.S. gross domestic product, denounced so-called religious freedom laws, his travel ban from Muslim-majority countries, white supremacist rally in Charlottesville, Loren Matthew/AP Images for Bloomberg Global Business Forum, means his or her political leanings can filter into business decisions, companies are responsible to shareholders first and foremost, demonstrates that liberal executives tend to pay more attention, are less likely to reduce their workforce, are more likely to concede to activists demands, increasingly say CEOs have a responsibility to speak out, signed a statement supporting voter rights. Apple CEO Tim Cook escorts US President Donald Trump as he tours Apple Computer plant in Austin, Texas. He joined the board of directors, following his promotion to president and CEO in 2010. To be classified as Republican or Democratic, at least two-thirds of the executives donations had to go to either party; otherwise they were classified as neutral. Overall, roughly 57% of the CEOs were classified as Republicans, and about 19% as Democrats. The company has been recognized as a leader in financial services, including on Forbes magazines list for Worlds Best Employers and Worlds Top Female-Friendly Companies as well as Fortune magazines list of Worlds Most Admired Companies and Best Companies to Work For. Mr. Moynihan earned $32 million in 2021, which includes $1.5 . Effectively, a carbon tax is going around the world through all these commitments. But there are certain industries that didnt have the diversity record of the financial services industry, for example. In 2016, Bank of America CEO Brian Moynihan told The Wall Street Journal that job descriptions for corporate leaders now include driving what we think is right. This seems like a failure of government, carbon pricing. Corporate executives tend to follow public sentiment, as they want to minimize the risk of losing customers for their products and services. Every company has said that. However, others might be more familiar with him because of the criticism that has been levied against him. We found 100 of them, we did $300-plus million in commitments to those funds. Interestingly, even liberal CEOs said very little until 2011, including those who already provided employees with domestic partner benefits. We believe that the principles of a free market, individual liberty and personal responsibility provide the greatest hope for meeting the challenges facing America in the 21st century. While I believe CEOs are partly responsible for the growing business-GOP divide, its not the only factor driving it. But this union has become increasingly strained in recent years over a range of social issues, particularly regarding LGBTQ rights. Brian Thomas Moynihan (born October 9, 1959) is an American businessman and the Chairman and CEO of Bank of America. Brian Moynihan Has Run Bank of America Conservatively. The CEO is the corporation's top decider, which means his or her political leanings can filter into business decisions. This transcript has been edited for length and clarity. January 10, 2020. from 1999 to present. His father worked as a chemist while his grandfather was a lawyer. We asked them to put a price on carbon, to say its X, so we can all shoot at X, as opposed to now where one person says its this, one person says its that, how much capture is worth, or offsets or reduction. Texas governor backed out of throwing the ceremonial first pitch at the Texas Rangers home opener. The study looked at campaign contributions by more than 3,800 CEOs of S&P 1500 companies between 2000 and 2017. All in all, Scott concluded that this is a case of the pot calling the kettle black: Brian Moynihan is a messianic menace, who has become a billionaire running a too-big-to-fail bank, and who now wants to use that bank and its owners and clients assets to constrain and diminish the lives of his guarantors (American taxpayers) while he remains a master of the universe. According to the report, Moynihan's Bank of America paid no federal income tax in 2010 and received a $1.9 billion tax refund despite making $4.4 billion in profits. The answer is, absolutely. Weve got to say it isnt fair for developed countries to say, Hey, we did this by fossil fuel burning to make electricity so we can become a prosperous nation. You cant do that. [10], He joined Fleet Boston bank in April 1993 as a deputy general counsel. Indiana University provides funding as a member of The Conversation US. Are CEOs influenced by their own political preferences when deciding whether and how to spend corporate funds on politics? Lloyd Blankfein, Goldman Sachs ( GS ). Then in 2010, he was promoted to CEO of BoA after Ken Lewis stepped down.Currently, Moynihan is also the chairman of several other organizations, including the World Economic Forum International Business Council, The Financial Services Forum, and Bank Policy Institute. Following is the unofficial transcript of a CNBC exclusive interview with Bank of America Chair & CEO Brian Moynihan on CNBC's "Mad Money" (M-F, 6PM-7PM ET) today, Tuesday, April 19 th. Of course, Munsterman refers to a person from the Irish region of Munster. The views and opinions expressed in this commentary are solely those of the author. Interestingly, he majored in history, which isnt exactly what would come to mind for most people considering his current career. He is also a member of the Brown University Corporation's Board of Fellows, the Catalyst Board of Directors, the Council on Competitiveness Board (chair) and the Appeal of Conscience Board of Trustees. Those who are interested in seeing the St. Louis Blues play at the Enterprise Center should be happy to know that they arent one of the NHLs more expensive teams to watch. After Bank of America (BofA) merged with FleetBoston Financial in 2004, he joined BoA as president of global wealth and investment management. His past roles also include those of the director and president of Global Wealth at FIA Card Services NA, director of The Boys & Girls Clubs of Boston, Inc., vice chairman of The Kennedy Center Corporate Fund and chairman of The Financial Services Roundtable. A habit he swears by: Moynihan recommends that leaders look "out-in.". Instead, businesses are trying to make clear that their concerns are not partisan in nature. We are worried about the environment, youve seen massive movements of people out of poverty worldwide. Moynihan started working at Bank of America because of a merger. Branch Metrics was founded in 2014 by Alex Austin along with partners Dmitri Gaskin, Mada Seghete, and Mike Molinet. In 2011, Moynihan accepted $5 billion in capital from Warren Buffet. But this union has become increasingly strained in recent years over a range of social issues, particularly regarding LGBTQ rights. In short, what happened was that Moynihan was an executive at FleetBoston Financial, which winded up merging with Bank of America in 2004. [14], On December 27, 2011, Julia LaRoche wrote in Business Insider that Moynihan "admitted the proposed $5 monthly fee for debit card users wasn't the best idea". Shareholders Have Prospered. 20 Countries With the Least Amount of Debt, The 10 Most Expensive Skateboards in the World, The 10 Best Ducati Motorcycles of All-Time. One of the Bank Executives Targeted By Bernie Sanders. In my own research, Ive found a CEOs political affiliation can affect how a company spends money. The industry wants a mandate for sustainable aviation fuel as a percentage of total fuel used. Falls Church, VA --News Direct-- National Legal & Policy Center Bank of America 's annual meeting is scheduled for April 25, and shareholders will be asked to vote on a proposal that would increase. He Quietly Turned Bank of America Around. More recent research also demonstrates that liberal executives tend to pay more attention to gender diversity inside their companies and are less likely to reduce their workforce when economic conditions deteriorate, consistent with the values that liberals prioritize. Brian Moynihan and Susan Berry Henry R. Muoz III and Ariana DeBose Gov. And more recently, it has become even more critical for companies to consider public sentiment when deciding whether to take a stand on a hot-button issue. The efforts have doubled down. He says it's important for leaders to consider what's impacting those doing certain projects and how to remove barriers from their work. It is interesting to note that Moynihan was born in the city of Marietta, which can be found in Ohios Washington County. [Get the best of The Conversation, every weekend. The issue is also the diversity of purchasing power. Gender: MaleReligion: Roman CatholicRace or Ethnicity: WhiteSexual orientation: StraightOccupation: BusinessParty Affiliation: Republican, Nationality: United StatesExecutive summary: CEO, Bank of America, High School: Marietta High School, Marietta, OH (1977) University: Brown University (1981) Law School: JD, University of Notre Dame Law School (1984), Bank of America President and CEO (2010-)
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