Marcato Capital Calls For Leadership Change At Bank Of New York Mellon

(RTTNews) - Marcato Capital Management LP , a San Francisco-based investment manager that beneficially owns approximately 1.6% of the outstanding shares of The Bank of New York Mellon Corp. (BK), released its analysis of the company and its conclusion that meaningful leadership change needs to take place in order to create significant, long-term shareholder value. Marcato believes that meaningful improvement will not occur without meaningful change in leadership and that starts with the CEO.

According to Marcato's letter, Bank of New York Mellon is simply not achieving its potential. This is most easily observed by the persistent failure to achieve long-range earnings targets. Evidence of underperformance is also observable across a broad range of key performance measures including headcount growth, controllable expense levels, assets under custody growth, and investment servicing revenue growth. This management has both failed to reach its own goals and failed to keep up with key performance indicators of the competition.

"Given the unusually long tenure of this leadership group, we doubt that meaningful progress will be achieved without new executive talent. It is not the board's role to micromanage the organization, but it is the board's responsibility to set appropriate goals for the business and hold management accountable for failure to meet those goals. It is time for the board to exercise this responsibility," Marcato said.