BoA chair, CEO roles should NOT be consolidated: Mike Mayo

BofA's vote battle
BofA's vote battle

Bank of America shareholders should split the company's chair and CEO positions because keeping them consolidated could make the bank a bigger target for regulators, CLSA analyst Mike Mayo said Monday.

"We think a 'no' vote is in the best interests of shareholders, at least until BofA's board improves oversight more consistent with a new G30 report on bank culture," Mayo said in a note, referring to the report released in July.

"The 78-page G30 report stresses the need for bank boards to improve their oversight which, in turn, can impact returns. Thus, we believe the two largest banks with the lowest ROE and stock-price performance over the past five years, BofA and Citigroup, should have a separate independent chairman providing more oversight, whereas the two that have performed the best (Wells Fargo and JPMorgan) do not need one," Mayo added.

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BofA shareholders are scheduled to meet Sept. 22 and vote on whether or not the positions should be merged.

Chairman and CEO Brian Moynihan has been wearing both hats since October 2014, when he succeeded Charles "Chad" Holliday.

Bank of America shares were down in premarket hours.

—Reuters contributed to this report.