A few months after allowing an activist investor to join its board of directors, BNY Mellon is facing another challenger.
Marcato Capital Management says a leadership change needs to take place at the company in order to create significant long-term shareholder value.
“We believe that meaningful improvement will not occur without meaningful change in leadership and that starts with the CEO [Gerald Hassell],” says Marcato founder Mick McGuire.
In a letter to Wesley W. von Schack, chairman of BNY Mellon’s executive committee, McGuire says the company isn’t achieving its potential and has failed to achieve long-range earnings targets.
“Evidence of underperformance is also observable across a broad range of key performance measures, including head-count growth, controllable expense levels, assets under custody growth and investment servicing revenue growth,” McGuire writes.
He adds that management has both failed to reach its own goals and failed to keep up with key performance indicators of the competition.
Marcato has also publicly released a presentation to shareholders at ABetterBankOfNewYork.com, making its case for why change is needed.
The San Francisco-based investment manager owns about 1.6% of BNY Mellon.