Clausen Retires as BankAmerica Chief Once Again

A. W. (Tom) Clausen, who led BankAmerica Corp. from near-collapse to record profitability in his second stint as chief executive, formally retired Thursday and handed over the company’s leadership to Richard M. Rosenberg.

The long-planned succession, taking place at the end of the banking firm’s annual shareholders meeting here, capped the career of a man who in late 1986 was granted what probably is the most remarkable second chance ever given a top corporate executive.

The succession also shows that BankAmerica’s priorities in the 1990s are likely to center on its strong retail banking franchise in California and the West. Rosenberg, 60, who has been the firm’s president, is credited with building the consumer business at the San Francisco-based parent of Bank of America into one of its most profitable areas.

Rosenberg, who assumes the posts of chairman and chief executive, spoke only briefly at both a press conference and at the meeting, preferring to leave the spotlight on Clausen for one final day.

Although Clausen said some major problems remain to be solved, such as restructuring troubled foreign loans, he said BankAmerica has “found its footing and proved its strength again.”

Some shareholders attending the meeting complained about what they believe are excessive executive salaries. But overall, the meeting resembled a Clausen retirement party, with shareholders praising him and at one point giving him a standing ovation.

Clausen first retired as chief executive in 1981, going on to head the World Bank. Within five years BankAmerica was bleeding red ink, losing a total of nearly $1.5 billion in 1986 and 1987.

Clausen’s successor, Samuel H. Armacost, took much of the heat and eventually was forced out in October, 1986, before Clausen was brought back.

At a press conference, Clausen said he and other directors originally believed that a turnaround would take from three to as many as five years.