- Key insight: Truist appointed Cathy Bessant, former vice chair of global strategy at Bank of America, as its newest board member.
- What's at stake: Bessant joins the 13-member board at a key moment for Truist, which set a new, higher profitability target in April.
- Forward look: Bessant will sit on the board's risk committee.
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Cathy Bessant, a former high-ranking Bank of America executive who was named American Banker's Most Powerful Woman in Banking for three consecutive years, will join the board of directors at one of BofA's largest regional rivals, Truist Financial in Charlotte, North Carolina.
Bessant, who retired from BofA in late 2023 as vice chair of global strategy, will sit on the Truist board's risk committee, the bank said in a press release. The board's size had shrunk to 12 after Steven Voorhees retired last year. The addition of Bessant brings the number of members back to 13.
Bessant will join the $549 billion-asset Truist at a key moment for the company. It set a new, higher profitability target in April, citing the strength of its recent performance and confidence in management's ability to achieve strategic priorities. The bank is now aiming to achieve a return on tangible common equity of 16% to 18% over the next three to five years, similar to the profitability goals at other large regional banks such as U.S. Bancorp and Citizens Financial Group.
Truist CEO Bill Rogers, who also chairs the board of directors, said in Monday's press release that Bessant offers "deep experience in financial services and philanthropy." Her "impressive track record of purpose-driven leadership and successful digital, technology and operational transformation on a global scale" will be a benefit to the bank and its customers, he added.
As a director, Bessant will receive an annual cash retainer of $110,000 and an annual grant of restricted stock units worth $200,000 on the date of grant, Truist said in a regulatory filing. Bessant's cash retainer and equity award for the current year will be prorated based on the number of days she serves as a director in 2026, according to the filing.
Bessant had a four-decade career at BofA, serving in a variety of roles. Prior to leading global strategy, she was the bank's chief operations and technology officer for 12 years.
She topped American Banker's list of the Most Powerful Women in Banking in 2017, 2018 and 2019. In 2020, she became the second inductee into American Banker's Hall of Fame.
After her retirement from BofA, Bessant took what she called "a dream job" as the president and CEO of Foundation For The Carolinas, one of the largest nonprofits in the country. The decision to leave banking was about knowing it was the right moment, she told American Banker.
"There comes a point in time when you say it's time for an organization to go forward," Bessant said at the time. "You feel complete and satisfied and happy with your contribution to the organization and shareholders, but you know that it's time to do something else."
Bessant, a Michigan native, also serves on the board of directors at Zurich Insurance Group and sits on the advisory board for the University of Michigan Ross School of Business. She's the immediate past chair of the USA Field Hockey board of directors.
