Wednesday, May 06, 2009

BAC Directors Don't See Their Future

Reading about how Bank of America's (BAC) directors have expressed full confidence in Ken Lewis staying on as CEO and how they didn't discuss any other director taking over as Chair than Walter Massey.

Massey has been on the board (and its predecessor board) for over 15 years, so he knows BAC. However, he has no banking experience in his own career background. Also puzzling, he's approaching BAC's mandatory retirement age.

Some critics have said this is an 18 member board that was hand-picked by Lewis and is showing favoritism to him instead of doing what's right for shareholders. I agree.

What these directors don't realize is that, with SEC rule changes coming next year including tossing out broker votes, it will be highly likely (unless BAC pulls off a Hail Mary type of stock performance between now and then) that Lewis (and probably several other directors) will be fired directly by shareholders at the ballot box.

It's another example of why this board is out of touch and needs fresh eyes on it -- including in the CEO spot.

Position: None.

Originally published in on 5/2/2009 8:35 AM EDT

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