He's letting his gal-pals be the messengers.
A faith-based shareholder group is asking Bank of America Corp. to separate the jobs of chairman and CEO, laying the groundwork for a potential showdown between the bank and some investors this spring. The Sisters of Charity of St. Elizabeth, based in New Jersey, filed the proposal with the nation’s second-biggest bank on Friday. Other shareholder groups that are also members of the Interfaith Center on Corporate Responsibility are expected to file similar proposals this week.
Bank of America angered some shareholders when its board in October decided to give the additional job of chairman to CEO Brian Moynihan . It was an unusual move because shareholders had passed a binding proposal in 2009 requiring the jobs to be held by different people. Influential pension-fund investors and advisers, including the California State Teachers’ Retirement System and the New York City Comptroller’s Office, have painted the board’s decision as a trampling of the shareholders’ will. The resolution by Sisters of Charity doesn’t mention that shareholders had previously voted to separate the jobs. Instead, it lays out recent litigation and accusations of wrongdoing against the bank, then argues that an independent chairman is needed to better oversee the bank’s top management and shore up cultural problems.