Bank Of America Corp. To Conduct Voting On Chairman Issue

Bank of America will allow shareholders to vote on the changed rule that made Mr. Moynihan chairman of the bank.

Recently, Bank of America released its plan details to allow investors to cast vote onif  Brian Moynihan,current  Chief Executive Officer, should also be chairman or not. In 2014, management of Bank Of America permitted Mr. Moynihan to be chairman as well as the CEO. On Friday, In Security & Exchange Commission filing, the bank ensured that it is going to set up a meeting to conduct voting on selecting a structure of leadership.

Although a time or date for the company’s meeting wasn’t revealed, according to the filing the bank stockholders will be permissible to take part in the meeting set by the management. Earlier in May,BofA said that it has planned to provide the right to shareholders to vote on company’s decision made previous year, a reply to the push-back from significant stockholders.

As per the SEC filing, if the investors choose that the current CEO cannot be the chairman at the same time, the bank will immediately seek another person for the chairman title. Mr. Moynihan said, “We appreciate the candor with which you have shared your insights and perspectives with us,” according to SEC filing.

In the meantime, Chief Financial Officer of BofA, Bruce Thompson announced recently that his exit from the company caused much discussion regarding the unexpected, sudden step by the official. This caused concerns among the investors as Mr. Thompson was believed to be a possible successor to the CEO. As the news came out, shareholders become concerned; this can be seen in the share price on next day.

But keeping in mind, this step and the latest decision at BofA to let shareholders vote on the divisive decision shows that the company is comprehensively revising its corporate control.

Furthermore, the bank recently reported solid results for the latest quarter of fiscal year 2015; together with great numbers to help investment opportunities, it looks like BofA is pretty much focusing to contest shareholders issues. Recently, in a shareholders note, Rafferty Capital analyst Dick Bove said that the American bank is still a robust company after the global financial crisis.

However, management issues have stimulated in the market, Mr. Bove has complete confidence in Mr. Moynihan, and thinks that American bank is on track once again.

Bank of America Corp. stock is up 0.37% to $17.86 at market close on Wednesday August 4. The BofA has $186.34 billion of market capitalization. Bank of America Corp. stock is up 0.37% to $17.86 at market close on Wednesday August 4. The BofA has $186.34 billion of market capitalization.