Moynihan Wins Vote

The New York Times report

Brian T. Moynihan gets to keep his job as both chief executive and chairman of Bank of America after shareholders on Tuesday backed the board’s decision to grant him both titles.

Roughly 63 percent of the shareholders’ votes cast approved a proposal allowing the board to decide whether its top executive should hold a dual leadership role at the bank.

Critics said their opposition to the measure was less a judgment on Mr. Moynihan’s stewardship of the bank and more a rejection of the way he and the bank’s board went about combining the chief executive and chairman titles last October. The board unilaterally overturned a shareholder vote in 2009 that required the two roles be separated.

Tuesday’s vote had become a rallying cry for shareholder activists, who said too many companies like Bank of America had run roughshod over the wishes of their investors. Some of the nation’s largest pensions funds in California, New York and Illinois came out against keeping the jobs together, saying two separate positions would provide more oversight at the bank.

There should be far more shareholder challenges against management. Consider this fact. Twenty years ago today, shares of Bank of America (BAC) closed at $17. Today, the stock is going for about $15.50. Isn’t that worth shaking up?

Posted by on September 22nd, 2015 at 11:04 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.