Trian Partners Says Removing BNY CEO Would Be "Dumbest Thing They Could Do" [REPORT]VW Staff
FOX Business Network’s (FBN) Senior Correspondent Charles Gasparino reports, “Nelson Peltz’s Trian Partners is rebuffing a request by fellow activist Marcato Asset Management to remove Bank of New York (BNY) Mellon Chief Executive Gerald Hassell from his job.” According to sources Trian Partners is, “not interested” in replacing Hassell, and Gasparino further reports, “Nelson and Trian believe replacing the CEO would be the dumbest thing they could do.”
n November, BNY Mellon announced that it had given a board seat to Trian founding partner Edward Garden who began to prod the bank’s board to improve profits margins, which have lagged competitors in recent years. Trian is looking to engage BNY Mellon in what people inside the fund call “constructive conflict” to reduce costs and possibly make other changes.
One idea under consideration by Trian is a spin-off of BNY Mellon’s slower growth “custody business” and to keep its more profitable asset management subsidiary, according to people with direct knowledge of the matter. FOX Business first reported the spin off discussion in November of last year.
With $23 trillion under custody, BNY Mellon is the financial industry’s largest “custodian bank,” where it safeguards and keeps records for large institutional investors.
See full report here.
On Trian Partners supporting Gerald Hassell:
“Nelson Peltz’s Trian Partners is rebuffing a request by fellow activist Marcato Asset Management to remove Bank of New York Mellon chief executive Gerald Hassell from his job. Trian Partners is not interested in replacing Hassell. Nelson and Trian believe replacing the CEO would be the dumbest thing they could do. That would really alienate the board and management from doing what Nelson thinks they need to do.”