Goldman Sachs, BofA shareholders reject proposals for CEO-chair split

SALT LAKE CITY, Utah, NEW YORK April 24 (Reuters) – Goldman Sachs (GS.N), opens new tab and Bank of America (BAC.N), opens new tab shareholders voted against proposals to divide the CEO and chairman roles at both banks on Wednesday, bucking pressure from influential proxy advisers to bolster corporate governance.

Proxy advisers Institutional Shareholder Services (ISS) and Glass Lewis had urged shareholders to support the moves and strip Goldman CEO David Solomon and BofA CEO Brian Moynihan of their chairman roles.

Norway’s $1.6 trillion sovereign wealth fund, one of the world’s largest investors, had also indicated support for the plan.

The vote “indicates the majority of shareholders are happy with those company performances, as well as pay packages, and didn’t want to risk rocking the boat by altering oversight,” said Stephen Biggar, analyst at Argus Research. “At the same time there was definitely traction on the proposal versus last year, so chairman/CEO separation could eventually pass in future years.”

Source: REUTER