SEIU forces Ken Lewis to resign as Bank of America chair
On 29 April, in one of the most contentious annual shareholder meetings in Bank of America's (BAC) history, shareholders called for new leadership and greater accountability as 50.3 percent voted in favor of a resolution forcing Chairman Ken Lewis to resign as Chairman of the Board.
"Today, we saw a vote of no confidence in Ken Lewis who has overseen record losses in stock value and whose short-sited business plans have put personal gain ahead of shareholders and the long-term health of the company," said SEIU Master Trust Chairman Andy Stern.
"Boards operate independently from management for good reason--to ensure proper oversight, to balance the inherently biased views of staff, and to provide the long view," continued Stern. "As shareholders, we're pleased that Bank of America has acted swiftly to implement the by-law change and we're hopeful that the new Chair will bring independent leadership, protect the interests of shareholders and get the bank back on track."
Today's successful vote follows more than three years of SEIU Master Trust advocacy and engagement with Bank of America to improve its corporate governance practices. In what is the first time ever that shareholders have been able to amend the corporate by-laws in a proxy vote of an S&P 500 company, the SEIU Master Trust resolution required that the Board of Directors appoint an independent Chairman to its board. Before filing this year's successful resolution, the SEIU Master Trust filed a similar resolution last year winning 38 (37.6) percent support from shareholders.
"Bank of America investors are calling for swift, fundamental reform of a bank that has lost its way. Appointment of a new Chair is just the first step; in coming weeks, Bank of America must make fundamental changes to restore shareholder trust and to build a banking governance model that will succeed over the long term," concluded Stern.
SEIU Master Trust is a consortium of funds that has total assets of more than $1.3 billion and is an active proponent of sound corporate governance as a vital means to protect and enhance shareholder value.
For more information: http://www.seiu.org/2009/04/seiu-master-trust-leads-successful-shareholder-resolution-that-forces-ken-lewis-to-resign-as-bank-of.php