BofA’s CEO Faces a Stress Test of His Own From Impatient Investors
ByWhen Bank of America Corp. shareholders gather next month to decide if Brian Moynihan can keep his chairman title, they won’t be the only ones about to weigh in on his career.
The Sept. 22 vote comes a week before the bank has to prove it has a firm grip on risk as it resubmits a capital plan to the Federal Reserve. If the Fed finds the lender didn’t fix weaknesses disclosed in March, it could crimp dividends or share buybacks for the third time during Moynihan’s tenure as chief executive officer. That’s already a sore point for investors getting one of the smallest payouts among U.S. banks.
“If they fail this time, I’d call for his head,” said E.E. “Buzzy” Geduld, who owns 2.5 million Bank of America shares as head of New York-based hedge fund Cougar Capital. “At the very minimum, you split the CEO and chairman roles, and I’d like to see someone from the outside who’s smart enough and strong enough that Moynihan’s going to have to answer to.”…
BofA’s CEO Faces a Stress Test of His Own From Impatient Investors
