Brian Moynihan the CEO of Bank of American is facing one of his hardest tests of his career.
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In 2010, Moynihan succeeded Lewis as the CEO.
“In what I think is an unprecedented move, the Bank of America board more or less threw over the desires of the shareholders”, says Analyst Nancy Bush, founder of the independent research firm NAB Research. If shareholders at Bank of America decide the jobs should be split, Moynihan would retain the role of CEO and a separate chairman would be chosen.
Future targets on the board could included Jack Bovender the lead independent director and members of the nominating committee of the board, said the analyst.
“We are pleased our shareholders had the chance to express their views, and we appreciate their support to continue driving our company forward for them and for our customers and clients”, said Moynihan after the vote. Some have said that a win on Tuesday by Moynihan might only reinvigorate the bank’s efforts to make changes to its board. They say there’s no evidence to suggest a separate CEO and chairman would perform better.
Two California pension funds, CalSTRS and CalPERS, which together hold about 1.6% of Bank of America’s shares, remain concerned by the Charlotte, N.C.-based company’s performance.
The results offer a vote of confidence for Mr. Moynihan, who has spent almost six years trying to turn the bank around as it dealt with loan losses and low interest rates that dented profit and high litigation costs from the mortgage crisis. “We do not believe now is the time to reduce oversight of management by combining the roles of CEO and Chair”.
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The bank’s shares have dropped thirteen percent in the current, to $15.55, and follows Citigroup, Wells Fargo and JPMorgan Chase.
