The leading financial institution Bank of America Corp (NYSE:BAC) is planning to make some changes to its senior leadership team. As per the reports, the institution looks forward to arranging a voting on the change made in October in relation with allowing Brian Moynihan, CEO, Bank of America to also act as its Chairman.
The Road Ahead:
As per the reports, the voting for the same is to be held in 2016. The information was revealed by a letter that was sent to all the shareholders on Monday by Jack Bovende and Moynihan. Bovende works as the independent director on the board.
The board of directors of Bank of America had made a decision in the month of September, which reversed the move to have separate people as the Chairman and CEO that the company took during the financial crisis. Bank of America is scheduled to have its annual shareholders’ meeting in Charlotte on Wednesday, and a decision like this has come two days prior to the meeting.
The announcement has created buzz around the corner. Two leading shareholder advisory firms named Glass Lewis & Co and Institutional Shareholder Services have criticized Bank of America for violating bylaws and changing them on its own. Both the firms have urged shareholders not to vote against the re-election of the same person for more than one positions. Both the firms are against appointing one person as CEO and Chairman, but still they have recommended Moynihan to be re-elected in company’s board this year.
It’s not about one or two companies that have voted against the election of directors on the governance committee, but most of the experts have started calling it an unethical step. They believe that the presence of any one person in two different yet important positions will not be good for shareholders’ rights in the long run.
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