Skip to main content

Newsroom

April 7, 2014

Bank of New York Mellon investors balk at board pay and expenses

“Shareholders in Bank of New York Mellon, the world’s largest custody bank, are voicing concern about expenses and executive pay ahead of its annual meeting on Tuesday.

“Two top-30 shareholders said they were disillusioned by a failure to keep expenses under control and meet targets on profitability since the company was formed in 2007 from the merger of Bank of New York – the oldest bank in the US created by one of America’s founding fathers, Alexander Hamilton – and Mellon Financial, an asset management firm.

“Gerald Hassell, who replaced Bob Kelly as chief executive after a boardroom clash in 2011, has a target of 10 per cent return on equity. But the bank has failed to meet its targets, and trailed rivals, such as State Street, in profitability, with margins several percentage points lower and persistently higher costs.

“It has become of increasing concern to us,” said one large shareholder. “We’ve noticed it and it has continued and it is in contradiction to the objectives and plans by the CEO when he took over.

***

Read full Financial Times article here.

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today