Splitsville: Bank Chairmen/CEOs Who Faced the Ax
May 21, 2013 9:11 AM
Like Jamie Dimon, a number of bank leaders have been in fights to keep their chairmanships from being lopped off in recent years. Many lost, and a few survivedbut it's rarely pretty.
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(Image: Thinkstock)
Beginning of the End
Wachovia stripped Ken Thompson of his chairman title in May 2008 after its catastrophic acquisition of Golden West. A month later, he was ousted as CEO. By the fall Wells Fargo (WF) had secured Wachovia for a fire-sale price.
(Image: Bloomberg News)
Too Late
Kerry Killinger, who became the head of Washington Mutual in the early '90s, lost the chairman's job in June 2008 as soured mortgages started to bring down the nation's largest thrift. He was ousted as CEO early that September, and Wamu failed later in the month.
(Image: Bloomberg News)
Familiar Pattern
Bank of America's Ken Lewis met the same fate as Thompson and Killinger when shareholders, angered that the true condition of Merrill Lynch might have been hidden from them until after B of A acquired it, removed him as chairman in April 2009. He would last as CEO only a few months more.
(Image: Bloomberg News)
Survivor
Speculation swirled when Fifth Third (FITB) gave Kevin Kabat's chairman title to William Isaac in 2010 . But Kabat is in his seventh year as CEO and added the vice chairman job last year .
Art of Compromise
More than half of KeyCorp's shareholders voted to strip CEO Beth Mooney of her chairmanship last year . The board, not bound by the vote, enhanced the role of its lead director instead.
(Image: Bloomberg News)
Sighs of Relief
Wells Fargo (WFC) and U.S. Bancorp (USB) rebuffed shareholder proposals to separate their chairman and CEO jobs this year.
(Image: Bloomberg News)
Any Advice, Jamie?
Disgruntled investor Charles Burnett 3rd recently attacked the decision of Regions Financial (RF) to give CEO Grayson Hall the chairman's title this year, arguing that such combinations "usually limit long-term shareholder returns ."
See You in Court
Southern Community's founding CEO was removed as chairman in late 2011 and was fired last year before its sale to Capital Bank. Bauer rarely spoke to William Ward after Ward succeeded him as chairman, according to Bauer's recent lawsuit against Capital.
Who's Next?
Bank of America and Citigroup are among the few big banks that put the CEO and chairman jobs in different hands, but corporate governance experts predict the trend toward split roles is inevitable .
