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Ken Lewis ousted as chairman (But He's Still CEO)- at Bank of America, Walter E. Massey new chairman
By Amarendra Bhushan for CEOWORLD Magazine Updated:April 30, 2009
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Ken Lewis, who has been at the helm of America’s largest bank by assets for the last eight years, was ousted as chairman of Bank of America yesterday after shareholders angry about the company’s acquisition of Merrill Lynch voted
Lewis will remain the CEO of the bank, but board member Walter E. Massey, president emeritus of Morehouse College in Atlanta, will become Bank of America Corp.’s chairman.
The rebuke from shareholders was a stunning turn of events for Lewis, who a year ago was at the top of the banking industry – and whose job as CEO is still marked by uncertainty.
Jerry and Jonathan Finger were among shareholders who spoke at the meeting. They had waged a campaign to convince shareholders to oust Lewis and two others from the board. They also urged separation of the CEO and chairman posts.
The pair, who own 1.1 million shares through their firm Finger Interests, launched a Web site and met with media and shareholders to make their case. Issues surrounding the Merrill Lynch deal were among their complaints.
Large shareholders such as California Public Employees’ Retirement System voted in line with the Fingers.
18-man board, all of whom were re-elected in spite of some investor attempts to oust key members. BoA’s shares lose 80pc of their value in the last year.
Merrill lost $15.8bn (£10.4bn) in the fourth quarter, forcing BoA to go cap in hand for an extra $20bn in Treasury funding and for a $118bn loan-loss guarantee.
Bank of America Corporation today announced the Board of Directors authorized a regular quarterly cash dividend on Bank of America common stock of $0.01 per share, payable on June 26, 2009, to shareholders of record as of June 5, 2009.
The board also declared a regular quarterly cash dividend of $1.75 on the 7 percent Cumulative Redeemable Preferred Stock, Series B. The dividend is payable on July 24, 2009 to shareholders of record as of July 10, 2009.
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