Shareholder Activists Reshape Bank of America

| About: Bank of (BAC)

Continuous calls for a stronger board of directors with deeper financial experience at Bank of America (NYSE:BAC) were answered on Friday when the bank announced it had replaced four of its directors. Shareholder activists and the US Government have been highly critical of the board’s lack of oversight and direction, especially with regards to the controversial Merrill Lynch acquisition. Many of the board members were criticized for their lack of appropriate expertise and for their closeness to beleaguered CEO Ken Lewis.

Mr. Lewis was stripped of his Chairman of the Board title in April at the company’s annual shareholder meeting after influential proxy advisory firms, CalSTRS, Iron Fire Capital and longtime shareholder Jerry Finger created a united front to oust him from having dual roles.

The four newly elected directors include:

  • Susan Bies, a former member of the Board of Governors of the Federal Reserve System and former CFO of First Tennessee National Corporation.
  • William P. Boardman, retired executive of Bank One Corp. and Visa International.
  • D. Paul Jones, former chairman and CEO of Compass Bancshares.
  • Donald E. Powell, former chairman of the Federal Deposit Insurance Corporation (FDIC) and former president and CEO of The First National Bank of Amarillo.

Last week, the company also announced that it had named Gregory L. Curl as Chief Risk Officer of the company. Mr. Curl replaces Amy Woods Brinkley who will “retire” later this summer. Ms. Brinkley has regularly been named to lists of the most influential women in business.

Mr. Curl, a 31-year veteran of the bank, will be “responsible for working with the company's lines of business to identify and navigate credit, market and operational risks.” Since 2001 he has served as a member of the Management Committee as a Global Corporate Planning and Strategy executive.

The company closed at $11.86 on Friday, down $0.01 (0.08%).

For more information on hedge funds and investors mentioned in this article, please see here.

Disclosure: No positions

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Tagged: , Regional - Mid-Atlantic Banks
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