Shareholder Activists Reshaping Bank of America

June 8th, 2009
| More
Continuous calls for a stronger board of directors with deeper financial experience at Bank of America (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%).
See Press Release
For Detailed Investor Profiles on these Investors, click below:
Ironfire Capital
CalSTRS
Related People: Eric Jackson; Jack Ehnes; Jackson Leadership Systems, Inc
Related Entities: Ironfire Capital US Fund LP; The California State Teachers Retirement System
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles


More Recent Headlines

GLG Partners Entering Retail Market

BlackRock Leading Race for iShares and BGI

Palo Alto Concerned Over Canadian Superior’s Shareholders’ Meeting Postponement

Paulson takes a $165 million Hit from Barclays Short

Activist Hedge Fund Manager Ramius Capital to Acquire the Cowen Group

Jeffrey Gendell Launching Tontine Total Return Hedge Fund

The Real Money Is In Flipping Bank Charters, Not Houses

4 Reasons Why Ackman Missed His Target

JPMorgan closing down Principal Investment Management

Madoff Brothers Not Speaking to Dad