Bank CEOs are making the media rounds at Davos. We’ve heard from everyone from Jamie Dimon to Vikram Pandit.
And then there was Morgan Stanley’s James Gorman, who said that if his employees are unhappy with pay cuts at the firm, they could “just leave.” Rough.
This morning Bloomberg TV’s Erik Schatzker spoke with Bank of America CEO Brian Moynihan and asked about compensation as well. And despite the fact that compensation is being cut left and right at BofA, Moynihan was not prepared to take the same hard stance as Gorman.
“We don’t have that many discussions (on compensation). We work with people all year long to understand we’ve got to perform as a company and they’ve got to perform as an individual. We’re with people every step of the way. The discussion is always honest, open and fair…I wouldn’t (tell them to leave like Gorman). Our employees know what they’re contributed and how they’re paid. I just stay away from that.”
So, BofA employees, that’s one reason to stay. You’re appreciated. Moynihan also cited another reason:
We have three groups of customers. We’re number two in investment banking. We’re two or three in trading. We’re number one in consumer pieces. We’re the top wealth management business in the in the world. We don’t need anything. We need to continue to show our customers and clients what they can achieve with this powerful franchise. And secondly, we have the opportunity now after six acquisitions in six years with 200,000 people coming in to actually sit and take this opportunity and operate it well. That’s what gets us the income streams that shareholders need.
Watch the full video below: