Bank of America Corp (NYSE:BAC) shareholders will have the right to vote for the company’s future major leadership positions in mergers and acquisitions that will take place in the company’s future.
The decision was passed by the bank after the investors objected and aired out their choices from two related organizations thus voting against the decision by the bank’s board members. The investors claim that they had no problem with the individual selected as the new CEO and chairman in 2014.
The investors claimed that their discontent was with the Bank’s decision to exclude them from consultations in joining the two positions. Additionally the investors were not happy with the bank’s decision to go against a shareholder vote when the financial crisis kicked in.
The bank’s spokesperson, who goes by the name Lawrence Di Rita, stated that all signs pointed to the fact that the investors were disappointed by the board members’ decision. She did, however, note that they had no problem with the current CEO and chairman, Kenneth Lewis. The bank responded to these grievances with a statement promising the shareholders an opportunity to take part in the next Annual general meeting that will be held in 2016.
Before the financial crisis back in 2009, the positions of chairman and CEO existed separately. Kenneth Lewis was the then acting chairman before the bank decided to unify them. In addition, the bank merged with another investment bank known as Merrill Lynch by the end of the 2008 financial year. When the financial crisis kicked in, it marked the loss of revenue for the bank and its acquisition as a result of frozen credits and loss of value.
By overruling the stockholder vote, the bank reported that it had made its decision through a narrow margin of 50.3% majority vote. Currently 13 of the 15 directors are independent, which is part of the bank’s strategy to maintain the shareholder expectations. According to the bank, the creation of positions for lead directors would cater for the period in which the two positions will be occupied by one individual.