Breakingviews editors discuss the bank's addition of the chairmanship to CEO Brian Moynihan's duties and why it's a lousy deal for shareholders.
Corporate governance 101 suggest the CEO and chairman job should be held by. Different people. Activists and other investors have been pushing that point of view for years and a lot of companies. Have come around but there are laggards and then -- firms that go the other way the latest Bank of America. Anthony. What -- these guys thinking what I. Think that basing themselves we can get away with it why the hell no my if you look at that the whole history of -- spinach embassy royals in Seattle's thanks. In America at least in any really used to happen on one case that's where. That of the guy who was running the bank was chairman of the time decided to moderates. I'll give you see your job over to someone else and status and overlooked -- That's on voluntary basis there have been many examples where the the you were stripped of the title so you know it's just got a little reason -- -- -- stripped of the title made chief executive he was not long for the job Brian Monahan took over as chief executive chairman. Now and in the same thing happened that -- -- Wachovia it out of -- and Washington Mutual right or get in the crisis these things change you study indicate. We can now start using this is a way punish. And actually that is now being fortunate aspect of this which is. You know it's it's a stigma not to be both the chairman and CEO in corporate America yet and an and that that needs to change but like when you have the biggest banks in the country I mean the only one that now has a separate. CO chair of this city city you again big. Which again that that was that again jury -- well when they changed -- back in 2007 I think -- Vikram Pandit came. That's when they change and it stuck halfway -- that's the other good thing about David it looked like they elect -- practice how serious like anybody -- this finally Charles Holliday who was -- -- until. Until this announcement was a -- and he wasn't the most high profile. -- wrote a piece to -- is gets a couple guys that step obviously. But at least they don't want and what about that's what about that said look we're gonna have an independently direct. That'll take care of them. What the problem it. But I mean that the problem is basically give too much how to bump us Branson the chairman of the -- is meant to oversee the exact his and to me chief executives say the chairman is also the chief executive. Where's the real oversight. And you got plenty of examples but bulls scenario and hope see I'm the CEO examined radical what have you seen it for fifty years there. I -- but yeah I mean database onset and many of the points and sailing if you give the same kind of pounds to the lead independent access right and what's the problem. And -- Arguably it does get to some Haitians that they and if it becomes a matter of semantics what is the point of a chairman's role right if you gonna give some of the past and you know an indirect and it's it's -- it's a bit of Miami edits that corporations that say look lead independent directors -- -- who won this tournament right. Looks at what. If there's -- -- give -- that makes it much regulatory powers excellent questions the both of you in the meantime stay tuned for more breaking news tomorrow.