BofA shareholders reject chairman/CEO split; Moynihan to keep chairman role

BofA's Moynihan: Good to have support
BofA shareholders reject CEO/Chairman split
BofA CEO can keep Chairman role

Bank of America shareholders voted down the splitting of the chairman and CEO positions on Tuesday, which are held by Brian Moynihan.

About 63 percent of the shareholders voted so that Moynihan would keep both of his titles.

Moynihan said after the vote that it is "good to have the support" of the shareholders and that he "learned a lot" from them.

Bank of America CEO Brian Moynihan.
Win or lose, Bank of America vote shows new shareholder muscle

The vote was announced late last week and, acccording to Reuters, it was expected to be close.

The issue had been a contentious one, with the two largest pension funds in the U.S., The California Public Employees' Retirement System (Calpers) and the California State Teachers' Retirement System (Calstrs), saying the two roles should not be consolidated, adding that the bank needed more independent oversight since it has been underperforming under Moynihan's leadership.

CLSA analyst Mike Mayo said in an Aug. 31 note that the roles should not be consolidated because it could make the bank a bigger target for regulators.

"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.

Bank of America shares were down more than 1 percent in mid-morning trading.