Shareholders re-elected Bank of America’s board of directors at today’s annual meeting despite intense opposition from two shareholder advisory firms. The opposition stemmed from the bank’s decision last fall to also make CEO Brian Moynihan the bank’s chairman. Many shareholders argued that should have been put up for a vote.
Shareholders also approved the board’s recent decision to drop Moynihan’s compensation package by a $1 million, to $13 million. All but $1.5 million of that is in company stock.
Shareholder Tom Flockhart told Moynihan it’s too much money because the bank’s stock has not rebounded, and investor payments were only a nickel a share last year.
"Wells Fargo paid $1.40 a share. The idea of an 11.5 million stock bonus for you is foreign. I don’t understand it. Traditionally a bonus is given on the basis of performance and return to the owners. I don’t think you are entitled to any bonus over and above your compensation ($1.5 million)."
In response to shareholder concerns, the board will now put Moynihan’s chairman’s title up for a vote, sometime before the 2016 annual meeting. In the meantime, Moynihan will continue to serve as CEO and chairman.
