BofA should alter governance committee or replace CEO, Mayo says

Bank of America Corp. should either change the makeup of its governance committee or get rid of CEO Brian Moynihan, according to Mike Mayo, an analyst at CLSA Ltd.

“Go ahead and have good governance, set financial targets, have a scorecard for compensation or change the CEO and other management,” Mayo said Tuesday in an interview on CNBC. “We don’t care how it gets done.”

The bank is scheduled to hold a Sept. 22 vote to approve bylaw changes that allowed Moynihan to add the chairman title last year. In a filing last month, the board praised Moynihan’s leadership and recommended investors ratify the bylaw change. Bank of America has said it will “promptly implement” a plan to find an independent chairman if a majority oppose the change.

“We believe the actions taken by the board of Bank of America make a mockery of the industry’s efforts to improve oversight of the banks since the financial crisis,” Mayo said of the bylaw changes that gave Moynihan both roles. “These moves by Bank of America taint the entire banking industry.’’

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