Bank of New York Mellon’s cost-cutting program has been effective and activist investors are appreciating measures taken to improve profitability, according to CEO Gerald Hassell.
“The active investors have now seen those improvements pull through our earnings, and our stock price has been reflecting it,” Hassell said in an interview with Bloomberg Television’s Haslinda Amin in Singapore on Saturday. “The trick is to embrace the criticism, adopt a program to really improve your company structurally and sustainably and show your investors that you can do it.”
Bloomberg News reports that under pressure from activist investors, the company with $29.5tril under custody and $1.66tril under management has been trimming expenses to maintain profit in an environment in which revenues declined on a year-over-year basis in the second quarter.
Hassell sold the bank’s headquarters at 1 Wall Street and reduced the real estate his employees occupy. He also streamlined technology operations.
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