This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Mayo Slams BNY Mellon Governance

NEW YORK ( TheStreet) --  BNY Mellon  (BK - Get Report) is in need of a major shakeup as the bank has underperformed peers on a variety of measures, argues CLSA analyst Mike Mayo in a report published Tuesday.

"There has been no new blood on the board in a decade, with the average board member having been in place since 1997. The board's expertise in needed areas such as technology and broker/dealer could be better," writes Mayo, in a report titled "Restructure This Bank?" The analyst has had an "underperform" rating on BNY Mellon since at least April 2011. Mayo states that "improvements in governance and efficiency would help us to reconsider" the rating.

Mayo cited a below-peer pre-tax margin "on a one- and three-year basis," and a 2% rise in the stock over the past three years, compared to a 16% increase in Northern Trust Corp. (NTRS), a 43% increase in State Street Corp. (STT - Get Report), and a 39% rise in the S&P 500.

Mayo was also critical of the fact that the bank "says it targets 10% ROE and positive operating leverage," but "has not achieved this level for the past three years" even though "management still gets above-peer-average pay."

BNY Mellon shares were up 0.58% to $31.09 in late morning trading on volumes of 2.6 million shares compared to average daily volumes of 4.7 million shares over the past three months. Shares of State Street and Northern Trust were up 1.50% and 0.92% respectively.

A spokesman for BNY Mellon declined to comment on Mayo's report.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BK $39.75 0.00%
STT $73.47 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs