Bank of America is pitching a shareholder vote on combining the chief executive and chairman post.
Mike Mayo, a banks analyst with CLSA and a leading voice on Wall Street, hates the idea.
Bank of America set out some of the details on the vote on Friday July 31 in a filing with the Securities and Exchange Commission.
Mayo however wasn’t impressed. He tore into the filing in a note on Monday morning, saying the argument presented to shareholders was misrepresented by misleading data and hyperbole on the part of the bank.
The note said:
We believe the 14A gives misleading time frames for performance (nine months), hyperbole (CEO: “unparalleled”), overstated qualifications, and mischaracterization of the vote as a CEO referendum versus what’s best for shareholders.
He views the move as another example of mismanagement by the bank’s directors.
“Even after the sudden CFO change, there is no mention of management succession,” he pointed out Monday. “The more relevant question is whether [Bank of America], after a period of such poor governance, should have more independent oversight — not less.”
Bank of America declined to comment. It is expected the shareholder vote on Moynihan’s appointment as chairman position will come before the end of the year. No date has been set.
Mayo has been a consistent critic of Bank of America. He’s had good reason. The bank’s stock performance lags that of its peers, as well as that of the S&P 500, in 2015 so far.