BOA splits chief from chair
(4 May 2009 – USA) Bank of America, after a shareholder vote, has announced the separation of the chairman and chief executive officer roles of the bank.
Ken Lewis, who had held the positions of chairman and chief executive, has been voted out of the chairman position via an shareholder proposal to split the positions. Lewis kept the CEO role.
Lewis, now the President and Chief Executive Officer, came under shareholder protest primarily for the decision to purchase Merrill Lynch despite the investment bank faltering even further during the acquisition stage.
Along with the purchase of Countrywide Financial, Lewis said, despite shareholder protests, that the deals were looking more and more like successes to be celebrated.
After the deal was done, Merrill Lynch reported US$15 billion in fourth-quarter losses and it was found that BOA approved early bonus payouts to Merrill executives.
Lewis, 62, who had been chairman and CEO since 2001, was unanimously kept on as CEO of the bank, while board member Walter E. Massey was elected as chairman.
The moves means that the bank will now have an independent board chairman and the CEO will now be accountable to a board chaired by an independent director.
Despite all the protests, the proposal was only just passed, 50.34 percent to 49.66 percent, while Lewis was re-elected as a director.
Lewis, now the President and Chief Executive Officer, came under shareholder protest primarily for the decision to purchase Merrill Lynch despite the investment bank faltering even further during the acquisition stage.
Along with the purchase of Countrywide Financial, Lewis said, despite shareholder protests, that the deals were looking more and more like successes to be celebrated.
After the deal was done, Merrill Lynch reported US$15 billion in fourth-quarter losses and it was found that BOA approved early bonus payouts to Merrill executives.
Lewis, 62, who had been chairman and CEO since 2001, was unanimously kept on as CEO of the bank, while board member Walter E. Massey was elected as chairman.
The moves means that the bank will now have an independent board chairman and the CEO will now be accountable to a board chaired by an independent director.
Despite all the protests, the proposal was only just passed, 50.34 percent to 49.66 percent, while Lewis was re-elected as a director.
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