Warren Buffett is very supportive of Brian Moynihan and Bank of America and the turnaround that he has put in the works over the last five years, which was reported by Forbes magazine, even though the CEO has added the title of chairman to his status and this was objected by the California State Teachers Retirement System.
“The reality is that even Bank of America’s critics are likely to mostly agree with Buffett’s positive reviews of Moynihan,” said the magazine. Ricardo Duran, the pension fund spokesperson, says that the objection comes from the shareholders not having a say in naming him as the president.
Back on October 1, the directors of the bank removed the bylaw that mandated a chairman that is not management, and just hours later, Moynihan was appointed to the position. Back in 2009, shareholders of the company had voted and said that they preferred that the two jobs were split. The pension fund, which is obviously a large Bank of America shareholder, sent a letter to Bank of America asking for a shareholder vote, and the board of directors has yet to make a response.
Warren Buffett, holder of both jobs at Berkshire Hathaway, mentioned that the two jobs are going to be separated once he retires.
“The one advantage of having them separated is if you get a mediocre CEO, it is a lot easier to do something about it if you’ve got a separate chairman,” said Buffett CNBC last month.