Reuters (http://www.reuters.com/article/2014/11/07/us-bank-of-america-moynihan-idUSKBN0IR2D620141107) has run a further update on the on-going dialogue between shareholders and the Board of Directors at Bank of America Corp (BOA) over the separation (or not) of the Chairman and CEO roles at the banking giant.
The differences are not so black and white. The article suggests significant BOA shareholders such as Warren Buffet support the move, which suggests the appointment to this additional role for Moyinhan has merit. In addition, BOA named Jack Bovender as Lead Independent Director. Bovender's appointment to the Board was announced in August 2012 and has significant governance experience at HCA, the largest US for profit hospital operator, hails from North Carolina, and is a strong supporter of various local charities and Duke University.
The differences are not so black and white. The article suggests significant BOA shareholders such as Warren Buffet support the move, which suggests the appointment to this additional role for Moyinhan has merit. In addition, BOA named Jack Bovender as Lead Independent Director. Bovender's appointment to the Board was announced in August 2012 and has significant governance experience at HCA, the largest US for profit hospital operator, hails from North Carolina, and is a strong supporter of various local charities and Duke University.
Yet, I still wonder if such decisions to combine the CEO and Chairman title (regardless of the individual's merit) and then name a Lead Director (in this case to a person without significant banking, risk management or global capital markets experience as far as I can establish reviewing Businessweek's profile) would fly here in Europe. I think unlikely. European banks and corporates tend to often separate these two roles on the principles of good corporate governance, regardless of the intention, skills or prospects of the CEO in charge.
It will be interesting to see if Europe and the North America converge or not on this important governance norm relating to the roles of Chairman and CEO, even for very large, systemically important global financial institutions.
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