It’s a Big Win for Bank of America Corp (BAC) CEO Brian Moynihan
After months-long campaign, it was a big win for Bank of America Corp (NYSE:BAC) CEO, Brian Moynihan. When the victory was assured after the voting that took place on Tuesday, Moynihan did not show any hint of celebration. That suggests that it was a foregone conclusion that the shareholders would back the board’s proposal to allow him to hold the dual position of the chairman also. Even the opponents said that they were not against Moynihan but were not happy with the way the company initiated the process.
All the intensity that was showcased before the voting against Bank of America Corp (NYSE:BAC)’s tactics seemed to have been not there in the shareholder meeting. The voting took place for barely thirteen minutes, and it looked as a formality. That was because 63% of the shareholders indicated their preference to entrust the board with an authority to take a call whether the CEO can also hold the Chairman title.
As far as the activists’ shareholders were concerned, the voting was a flash point. It appeared that they wanted to show their opposition to the company’s move. The opposition came from the biggest pension funds in New York, California, and Illinois. Their opinion was that two independent persons should offer more oversight.
Termed It A Big Victory
Bank of America Corp (NYSE:BAC)’s officials and other bank officials termed the victory as a big one and that it was in line with the results of other firms, which faced similar situations. Most of the big banks don’t have a separate position for the Chairman except Citigroup Inc (NYSE:C), who is an independent chairman.
Moynihan said that it was one more piece of the normal banking act after tasting victory. The initial tension seemed to have gone and looked more relaxed. Even before the meeting, the voting was not regarded as a referendum on the CEO’s leadership. However, it was more on the part of Bank of America Corp (NYSE:BAC)’s governance. Moynihan has been the CEO since 2010.
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