The odds are still in Ken Lewis’s favour, but an increasing number of shareholders intend to kick him off the Bank of America (BAC) board tomorrow.
You’ve got angry retail investors, various activist investors, and now CALPERs says it will vote against the Lewis. The huge and influential state retirement fund owns 22.7 million shares of BofA
CalPERS contends that Lewis and other directors failed to disclose information to shareowners in connection with Bank of America’s merger with Merrill Lynch. The pension fund also believes that the undisclosed payment of billions of dollars in bonuses to Merrill Lynch executives – before completion of the merger – warrants a vote against all directors.
“The entire board failed in its duties to shareowners and should be removed,” said CalPERS Board President Rob Feckner. He noted the poor condition of the company, the failure by directors to disclose the extent of Merrill Lynch’s losses prior to consummation of the merger, the payment of billions of dollars to Merrill executives in bonuses for failure, and the failure of the board to act in the best interests of shareowners in overseeing management.