Bank of New York Mellon Corp's Chief Executive Robert Kelly has emerged as the front-runner for the top job at Bank of America (BofA), but compensation issues are making a hurdle to the deal, says a media report.
Attributing to people familiar with the situation, the Wall Street Journal reported that 55-year-old Kelly has emerged as the front-runner to succeed Bank of America chief executive Kenneth Lewis, who is set to retire at year-end.
As of Sunday night, the negotiations were fluid, the report said citing a person close to Kelly, adding that it might not be possible to reach an agreement with directors of the US bank.
According to the publication, compensation remains an obstacle despite the bank's escape from government restrictions on executive pay.
Last week, BofA had repaid $45 billion bailout money, freeing it from pay limits and scrutiny by Treasury Department pay zar Kenneth Feinberg.
The daily noted that Kelly hasn't been offered the top job officially at Bank of America, which is the largest US bank as measured by assets.
But the gap between him and the bank's board "is down to compensation now," the report said citing one person familiar with the situation.
