Calpers calls for ousting of Bank of America board of directors

Posted Apr 29th 2009 7:00AM by Zac Bissonnette
Filed under: Bank of America (BAC)

The largest pension fund in the country, the California Public Employees' Retirement System (Calpers), wants Ken Lewis and every single one of Bank of America's (NYSE: BAC) 17 other directors sent packing for not disclosing mounting losses at Merrill Lynch or the company's secret meeting with the Treasury Department looking for money to complete the acquisition.

Calpers joins the Service Employees International Union, CtW Investment Group, and a number of other influential shareholders and proxy advisors in voting for Ken Lewis to be kicked off the company's board of directors.

The company's annual meeting is today, and Bloomberg reports that "Ballots will be cast at the bank headquarters in Charlotte, North Carolina, on whether to re-elect directors and split the chairman and CEO jobs held by Lewis. Dislodging Lewis after eight years as chairman may depend on how mutual funds and brokerages vote their shares."

What we will witness today is the absolute travesty that is corporate governance in America. If Lewis et al. do win, it will be because of a combination of controversial broker non-votes and votes from institutional money managers who are hesitant to cross the management of a financial services company for fear of what is known as issuer retaliation.

In other words, if Ken Lewis wins, it won't be because shareholders believe he's the best man for the job. With the stock down 79% in the past year, he clearly isn't. Ken Lewis will win because of procedural issues and money managers abdicating their fiduciary duty to shareholders. Those institutional shareholders are the ones I would like to see the SEC go after. They have a responsibility to vote in the best interests of their investors, not in the best interests of their asset-gathering business and desire to get into an elite Manhattan co-op.

If Ken Lewis had any sense of decency -- which he doesn't -- he'd offer to resign right now instead of sheepishly looking to retain his title through a broken system of corporate governance that is a big part of what got us into this mess.

Tags: BAC, Bank of America, BankOfAmerica, Corporate Governance, CorporateGovernance, featured, Ken Lewis, KenLewis

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Reader Comments (Page 1 of 1)

4-29-2009 @ 8:41AM

Reg Joe Moe said...

With all the blood money they manage to suck out of their customers, you'd think this flying pig could readily afford better dentures, rather than his mouthful of obvious fake teeth. His company of "banksters" should have spent more for a better dental plan, or he should've gone to a more skillful dentist.

Or, simply grab another CEO--aren't they dime-a-dozen these days?

4-29-2009 @ 8:55AM

Mazta Gangzta said...

Thassright ... “Bankstaz Of America”™®©.

4-29-2009 @ 10:30AM

chex781391 said...

Go ahead, keep Lewis and let the goverment pour billions in so they can continue to line their pockets and the pockets of polititions. I've decided that enough is enough,,, I'm not going to pay taxes,, I've already lost most all I have worked for for 30+ years. Ain't really nothing left to lose. IF YOU FEEL THE SAME, RAISE YOUR EXEMPTIONS TO 10, iF WE ALL DO IT, THEY'LL GET THE MESSAGE.