BofA Adds Four Board Members As Others Approach Retirement

BofA Adds Four Board Members As Others Approach Retirement

Bank of America Corp (NYSE:BAC) has appointed four new members to join its board of directors, as it expects a good number of its current board to retire in the near future.

The company has a policy stating that directors retire at the age of 72 years. According to the latest SEC filing, BofA  Schedule 14A, the company has one director, already aged 72 years, that is, Virgis W. Colbert; Senior Advisor, MillerCoors Company. In addition to this, two more directors are aged 71 years, they are, Donald E. Powell; Former Chairman, Federal Deposit Insurance Corporation (FDIC), and Charles O. Rossotti; Senior Advisor, The Carlyle Group LP (NASDAQ:CG); while Charles K. Gifford; Former Chairman, Bank of America Corp (NYSE:BAC), is aged 69 years.

Michael Mauboussin: Here’s what active managers can do

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkThe debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More

The newly appointed board members come from a cross section of industries, something Charles O. Holliday, Jr., the bank’s chairman, feels will be very beneficial to the company. He is quoted in a statement by the the New York Times, saying, “Bank of America shareholders will benefit from the global perspectives, diverse insights and depth of experience these leaders possess.”

Illustratively, Sharon Allen, a former Deloitte chairwoman comes from the accountancy and audit sector, while Linda Hudson, president and chief executive of BAE Systems plc (LON:BA) (PINK:BAESY), based in the U.K, operates in the industrial goods sector. Additionally, the new board members also include Jack Bovender, former HCA Holdings Inc (NYSE:HCA) (healthcare sector) chairman and chief executive, and David Yost, former chief of AmerisourceBergen Corp. (NYSE:ABC), a service based company, for drugs wholesale.

Coincidentally, Bank of America is not the only financial institution that has added new board members in the recent past. U.K’s Barclays PLC (LON:BARC) (NYSE:BCS), which saw three board members resign owing to the Libor Scandal, and the investment banker, Goldman Sachs Group, Inc. (NYSE:GS), were involved in the same exercise as featured in our earlier articles.

The board members expected to retire in the near future still remain at the helm, the current number stands at 16, but this could be scaled downwards the moment they start retiring.