Management Turnover as Change Agent

Wednesday, January 28, 2009

CEO Watch - Ken Lewis, Bank of America

Ken Lewis, BofA's embattled CEO who was responsible for BofA's questionable acquisitions of Countrywide and Merrill Lynch is expected to survive today's BofA board of directors meeting.  According to the Wall Street Journal,
"Lewis's job is in no danger," a person close to the board said Friday.
Whether he survives or not Lewis will remain on the hot seat for some time.  While both major acquisitions were favored by the government, at a minimum Lewis has failed to manage them and deserves to be forced out.  Rob Cox and Anthony Currie of Breakingviews.com yesterday, which appeared in the New York Times, summed up Lewis' predicament and concluded,
Corporate executives must accept responsibility for failures if they’re to keep their shareholders’ trust. When they don’t, it is up to the board to make sure blame is apportioned appropriately. Lewis hasn’t come clean. BofA’s board must go.
I agree but suspect the prevailing view that Lewis will for now remain at his post are accurate. Stay tuned.  

For more:  

AP  

No comments: