Back to Sleep: A New Chapter for Bank of America?
Bank of America’s decision to strip CEO Ken Lewis of the Chairman title has made headlines, but does it really matter? Not so much. If they were serious about change, they would have appointed someone new as CEO while keeping Lewis as Chairman. Instead, it’s just more of the same—nothing truly groundbreaking. As we noted on TGR earlier this week, the situation continues to get stranger by the day.
New Chairman, Same Old Story
Newly appointed Chairman Walter Massey, a long-time board member, is hardly the change agent the bank needs. Plus, they’ve kept lead director Temple Sloan for now—until investor Hugh McColl speaks up with a fresh perspective. For now, it’s business as usual.
Lewis’s Continuing Control
Despite the changes in titles, Lewis still acts as though he’s the bank’s most essential asset. In a recent interview (Wall Street Journal, April 30th), he said of the Merrill Lynch deal, “My decision and the board’s to go ahead with the merger was not about a selfish desire to keep our jobs,” and added, “Every member of this board, including me, would be all right if we had to leave the company.”
Someone needs to remind him that he represents the bank’s owners and customers, not just his own interests. There’s a clear difference between clocking in at a company and actually doing what’s best for it, but it seems that difference is currently lost on Lewis.