Goldman Sachs and Bank of America find themselves in the midst of renewed pressure as proxy advisers urge investors to support the separation of their CEO and chairman roles. This move, aimed at enhancing governance, has gained traction in recent years, particularly following the 2008 financial crisis.
Influential proxy advisers like Institutional Shareholder Services (ISS) and Glass Lewis are backing shareholder resolutions advocating for the split, though broader support remains uncertain. The call for separation is fueled by the belief that distinct roles would lead to better oversight and decision-making.
While CEOs like David Solomon of Goldman Sachs and Brian Moynihan of Bank of America hold both positions, there’s growing support for a division. Norway’s sovereign wealth fund, among others, backs the resolutions, emphasizing the importance of non-executive chairs in guiding strategy and promoting shareholder interests.
Despite past resistance from banks, the momentum for change persists. While some argue that lead independent directors provide adequate oversight, others contend that separating the roles strengthens governance structures.
Ultimately, the debate underscores the evolving landscape of corporate governance in the financial sector, with investors increasingly scrutinizing leadership structures and advocating for transparency and accountability.
