At the Bank of America Corp. (BAC) annual meeting on Wednesday, investors peppered Chief Executive Officer Brian Moynihan with questions and complaints about its lending policies and dividend.
Still, when it came to proposals that included an advisory vote on executive compensation, an annual so-called “say on pay” and a proposal that the board should adopt and publicize a succession planning policy, they ultimately rejected all but one.
Voters did approve a shareholder proposal to allow those with a 10 percent holding in the bank to call a special meeting.
But shareholders also heard from clients and investors that reported the bank had helped them stay in their homes and had reduced their mortgage payments.
Shareholders approved the bank’s 13 board nominees. Bank of America has appointed nine new directors since early last year in response to shareholder and government pressure for a board shake-up after the company reported billions of dollars in losses tied to its acquisition of Merrill Lynch & Co Inc.
Shareholders at the meeting, held at the Belk Theater of the North Carolina Blumenthal Performing Arts Center, voted on seven shareholder proposals in total, six of which they rejected.
In his address to shareholders at the start of the meeting, Moynihan said the bank is not likely to raise its dividend until it has reported several quarters of earnings.
The largest U.S. bank also wants to have more certainty about the economic outlook before it increases its payout to shareholders, he said.
Moynihan, who became CEO at the start of the year, also said he believes the company’s first-quarter earnings represent less than half its possible profit on a normalized basis. Earlier in the month, the bank reported first-quarter net income of $2.83 billion.
Responding to a shareholder question about the Securities and Exchange Commission charges against Goldman Sachs Group Inc (GS), Moynihan said the bank has reviewed its structured debt activities and is satisfied with the business.
Following the meeting, a decision the bank is expected to announce their decision on a new board chairman. The leading contenders were current directors Frank Bramble and Charles Holliday.
Shares of Bank of America were up 24 cents at $17.71 on Wednesday afternoon. The broader KBW Banks Index was up 1.3 percent.
