OK, Ken Lewis still has a job. And a very well-paid one, at that... CEOs don't exactly qualify for food stamps.
But the fact that a banking industry titan is finally paying a price -- and must now answer to an independent chairman -- is a satisfying development...
CHARLOTTE, North Carolina (Reuters) – Bank of America Corp (BAC.N) shareholders voted to oust Chief Executive Kenneth Lewis as chairman of the board on Wednesday after months of mounting criticism of his stewardship of the largest U.S. bank.
The bank's board "unanimously" expressed support for Lewis to stay in the CEO post despite the fact that shareholders "narrowly" approved a proposal to require an independent chairman.
The vote margin to strip Lewis of the chairmanship: 50.34% for, 49.66% against.
(If you've ever followed shareholder meetings, a development like this is stunning... shareholder proposals almost never pass, especially if the company comes out against them. For shareholders of such a huge corporation to vote out a sitting chairman is stunning.)
No, Ken Lewis won't be going on food stamps any time soon.
But he's no longer calling the shots without anyone else to answer to.
And the man who headed up one of the most ruthless banking companies in this nation has paid a price.
And that's a start.
UPDATE: Some further details now on the vote. Looks like the insurgency against Lewis came from pension fund investors, including the California state pension fund and union-affiliated pension funds.
Here's what one big investor said:
Michael Garland, director of Value Strategies for CtW Investment Group, praised the ouster of Lewis. His group handles 33 million BofA shares and works with union-affiliated pension funds.
"It's huge," he said. "It's an enormous victory for shareholders."
"We'll have an independent board chairman, and now the CEO will be accountable to a board chaired by an independent director. It's a critical critical first step," Garland said.
Something satisfying about union dollars helping oust the BofA chairman, isn't there?