BankAmerica Corp., long a powerhouse in consumer banking, surprised the industry on Tuesday by reaching into its wholesale business for its next chief executive.
David Coulter, one of eight vice chairmen, will succeed Richard A. Rosenberg in the post on Jan. 1, and he will immediately assume the title of president, the company said.
Mr. Coulter's elevation underscores a profound shift in the mix of businesses at the nation's second-largest bank.
Over the past two years, Bank America has expanded markedly in wholesale banking, which includes commercial lending, cash management, and other services for corporate America. The company signaled its arrival as a force in wholesale banking with its acquisition of Continental Bank Corp. in early 1994.
As vice chairman for wholesale banking and international operations, Mr. Coulter, 48, has been playing a pivotal role in integrating Continental into BankAmerica.
He had been considered a dark horse to succeed Mr. Rosenberg. The top contenders were thought to be chief financial officer Lewis W. Coleman, 53; vice chairman and retail banking head Luther S. Helms, 51; and former chief financial officer Frank Newman, 53.
"I consider myself very close to BankAmerica, and this is not the management announcement I had expected," said Thomas K. Brown, an analyst with Donaldson, Lufkin & Jenrette.
Mr. Coulter professed to be as startled as anyone.
"I'd be lying if I said I wasn't a little in shock," he said. He said he only found out about the promotion on Tuesday, when Mr. Rosenberg came into his office to tell him.
The announcement ends months of speculation about succession plans at the San Francisco banking company. Mr. Rosenberg, 65, had long been expected to retire by the end of this year or in early 1996.
The move lessens the likelihood that BankAmerica will enter into a major acquisition or merger in the near future, observers said. But it raises the specter of some management turnover, since other internal candidates were considered more likely for the job, and may now have opportunities for top assignments elsewhere.
"I would anticipate that there would be a round of management changes to follow," Mr. Brown said.
Mr. Rosenberg will retain the title of chairman into the second quarter of next year, the bank said. No successor for that position has yet been announced. But a source close to BankAmerica said it is expected that Mr. Coulter will also take the chairman's title.
In an interview, Mr. Coulter said he doesn't plan any changes in BankAmerica's strategy. "I've got no great bombshells in terms of major plans," he said.
Many analysts said they expected that Mr. Coulter's promotion would cause BankAmerica to focus even more on its wholesale businesses.
Ron Mandle, an analyst with Sanford C. Bernstein & Co., New York, said that Mr. Coulter's wholesale-oriented group has accounted for 36% of BankAmerica's earnings so far this year, second only to West Coast retail banking, which contributed 41%.
Mr. Coulter, however, said that he does not plan to make BankAmerica more of a wholesale bank.
Analysts said that, with the promotion, BankAmerica is less likely than it was before to enter into a major merger or acquisition. That's because the company will probably give Mr. Coulter time to settle in before changing its business dramatically.
BankAmerica executives have said repeatedly this year that the bank has little interest now in acquiring other banks. But that hasn't stopped the company from being the subject of rampant merger speculation. It has been named as a possible buyer of Chase Manhattan Corp. and as a merger partner for NationsBank Corp.
Analysts, who praised Mr. Coulter as a strong manager, said he has proved adept at integrating Continental Bank's strong wholesale operation with BankAmerica's. They also said he deserves credit for rapidly building up the bank's international businesses, especially in Asia.
But the naming of Mr. Coulter to the top position in the banking company is not without risks, analysts added. Mr. Coulter, who has been with BankAmerica for 29 years, has minimal retail banking experience, a big gap for the head of what is reputed to be the most retail-oriented of the country's largest banks.
By contrast, Mr. Rosenberg is seen as a strong retail specialist, with a particularly strong marketing bent. Mr. Rosenberg was highly regarded for his stewardship of BankAmerica's retail operation in Washington State, before becoming chairman.
At the same time, Mr. Coulter's promotion could lead to departures of the other key executives who were considered more likely candidates for the top job.
Mr. Brown and other observers said they would not be surprised if Mr. Coleman or Mr. Helms leaves BankAmerica to become president or chief executive of another banking company, since they are highly regarded executives.
A departure of Mr. Helms could be especially damaging, since Mr. Coulter is expected to need a strong retail banking chief to make up for his own lack of experience in that area. A BankAmerica spokesman said Mr. Coleman and Mr. Helms would not comment on whether they might leave.
Mr. Coulter said he has had no indications that any senior executives will leave the company, and hopes that they stay.
"This is a team effort by definition," he said.
People who have worked with Mr. Rosenberg and Mr. Coulter said the two men have some similarities, in that they work hard and make decisions quickly. But Mr. Rosenberg is said to show his feelings and opinions openly, while Mr. Coulter is said to be harder to read, although, by many accounts, a friendly and engaging person.
