Bank of America Stiffs Shareholders
Furious shareholders sued. But they also did something else: Led by the Service Employees International Union and Finger Interests, a Houston hedge fund, shareholders offered a binding resolution at the annual meeting calling for Lewis to step down from his role as board chairman. The idea was that having separate people serve as C.E.O. and chairman would provide additional board oversight.
The resolution narrowly passed. Several participants have since told me that they believe it’s the only example of shareholders passing a binding resolution over a board’s objection.
.. Yet, in October, without informing shareholders, the board decided to remove the provision in its bylaws splitting the roles, and anoint Moynihan chairman as well as C.E.O.