The ouster of Bank of America CEO Ken Lewis as its chairman is a turning point for shareholder activism at BofA, says School of Management Professor James Post, an expert in corporate governance and business ethics.
“The vote to separate the jobs of board chairman and CEO ends Ken Lewis’ record of unchallenged leadership at Bank of America. The shareholder vote that narrowly ousted him as chairman was the strongest signal of support for the board’s real independence and aggressive ‘watchdog’ role.
“One now can expect shareholders to exert intense pressure on Walter Massey, BofA’s new board chair, and fellow directors to oversee strategic decisions. There are huge operating issues to address before BofA recovers. Whether Ken Lewis stays on as CEO is a decision that he — and the board — will have to address soon.”
Contact James Post, 617-353-4162, firstname.lastname@example.org