Bank of America plans vote on change allowing CEO to be chairman
Reuters
Published May 04, 2015 05:25PM ET
Bank of America plans vote on change allowing CEO to be chairman
NEW YORK (Reuters) - Bank of America Corp (N:BAC) plans to hold a shareholder vote on the change the board made in October to company bylaws to allow Chief Executive Officer Brian Moynihan to also be chairman.
The vote, to be held no later than 2016, is in response to comments from shareholders since the board made the change on its own, according to a letter sent to shareholders on Monday by Moynihan and Jack Bovender, the lead independent director on the board.
The board's action in October had reversed a move by the company during the financial crisis to have separate people be CEO and chairman.
The announcement of a vote on the change comes two days before the company's annual shareholder meeting, to be held in Charlotte on Wednesday.
Ahead of the meeting, shareholder advisory firms Institutional Shareholder Services and Glass Lewis & Co issued reports that criticized how the board had changed the bylaws on its own. They recommended votes against the re-election of one or more members of the board's governance committee.
The advisory firms, however, recommended that Moynihan be re-elected to the board this year.
Stock analyst Mike Mayo of CLSA, who plans to attend Wednesday's shareholder meeting, has also called for votes against directors on the governance committee.
"We appreciate the candor with which stockholders have shared their insights, both in support of the decision and in expressing reservations about the process," the letter from Moynihan and Bovender said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.