https://www.americanbanker.com/news/truist-hits-reset-button-after-falling-short-on-key-profit-metric
8 replies (most recent on top)
The problem is Bill stands to gain A LOT more by selling TFC than he would by just walking out the door.
Not sure the BoD has what it takes to fire him. Probably too buddy buddy.
Maybe on the next earning call Mayo can ask - top 10 bank, best market, can't perform with peers, top talent leaving - is the problem with Truist Bill?
No one besides EL was responsible for the good will impairment loss or the loss in securities repositioning. And Bill has sold off most or all of the profitable parts of BBT that he could. Was that to pad his retirement or scale down TFC for a sale?
Project STAR 2.0
@mig+1utEbCl9 - Well said. Could not agree more! Bill and Co. have an antiquated “good old boy system” mentality. The C Suite gets lavish bonuses and raises regardless how the bank performs or employee engagement scores. The rank and file are nothing more than collateral damage in this vicious cycle of manipulation and abuse. Would be nice for Bill and cronies to GTFO and get some young energetic leaders in with fresh perspectives
EL’s strategy at this point is to tap dance, deflect and stall while they bonus out to themselves the remaining capital while they can. Then sell the dry withered husk that is Truist to another bank and bonus out one final time with the proceeds of the merger. While they’re stuffing their pockets with the merger cash and stock options, they will be espousing buzzwords like “synergy”, “merger of equals”, “efficiency”, “improved client satisfaction” and “economies of scale”. We’ve heard all this before. When you’ve been in banking long enough, you begin to understand the drill. All the good talent has already left. The new hires are basically placeholders while they continue to su-k the company dry. Expect more branch closings, more RIFs, reduced spending, and higher production goals.
How about we tie executive leadership compensation to engagement metrics, and send a survey after teammate bonuses are awarded on a vote of confidence in BOD and EL. That way if teammate bonuses take a hit like last year, teammates have a say in EL bonuses.
It is completely demoralizing that EL continues to receive increased total comp when rank and file teammates who actually have to handle client complaints, deal with cr-ppy systems and inefficient processes pay the price.
This company is stuck in a toxic cycle. It starts at the top.
It’s just a bad leader issue.
@icz+1utEbCl9 appears typical of SunTruist Teammates in the fact their reading comprehension skills are shall we say less than adequate. Mayo’s previous criticism led to the BOD being overhauled, 13 now instead of previous 21, EL overhauled as now it is a committee of 23 and changes made in how Exec compensation is judged. This is what Mayo said this week that was referenced in the article:
In a research note published Tuesday, Mayo wrote that he expects Truist's profitability returns to improve, but that "even higher levels from here are far short of the original merger" targets.
He said that "pressure should remain on management to perform after merger shortfalls," writing that Truist's efficiency ratio will "likely remain far above its pre-merger target of 51%" and noting that the new return on tangible common equity target "seems close to [the] current run-rate" and a "low bar."
Points of article -
- Benefits of merger still not realized. Merger benefits were inflated.
- Return on Equity metric consistently less than forecasted
- Efficiency ratio consistently less than forecasted
- As usual, Bumbling Bill and Co. are doing a sh**ty job managing Truist. Mike Mayo and Wall Street analysts are recommending an overhaul of BOD and EL team and more scrutiny with executive compensation