Connecticut moves to oust Bank of America's Ken Lewis, 2 board members
Connecticut Treasurer Denise Nappier oversees that state's $20 billion in retirement funds. The funds hold 3.2 million shares of Bank of America. That's about a half a percent of total shares. Nappier announced Tuesday she would vote against re-electing Ken Lewis, lead director Temple Sloan and governance committee chairman Tom Ryan. She pointed out that the fund's Bank of America shares lost $57 million after the stock tumbled following the Merrill Lynch acquisition. "This is a risk run amok. Ken Lewis negotiated a risky deal with Merrill Lynch in the midst of market turmoil, failed to disclose how risky the deal was to shareholders who voted on it and then paid $3.6 billion in bonuses to Merrill Lynch employees, which outraged investors even more," she says. The bank contends that Merrill was an independent company when it paid those bonuses. A bank spokesman had no comment on Nappier's announcement. Under Nappier's watch, the fund participated in proxy votes that eventually edged out former Disney CEO Michael Eisner.