Bank of America shareholder reiterates call to oust CEO Ken Lewis

By Lisa Kerner

Charlotte, N.C., April 20 - CtW Investment Group said shareholders are not impressed by Bank of America Corp.'s first-quarter earnings report released on Monday, judging by the 20% drop in the company's share price "so far today."

"The reality is that no earnings report can compensate for the Bank of America board's failures to both disclose Merrill's [Merrill Lynch & Co., Inc.] alarming deterioration prior to the merger vote and prevent nearly $4 billion in pay-for-failure bonuses from going out the door to Merrill executives at the expense of Bank of America shareholders," CtW said in a Monday statement.

According to CtW, the earnings announcement "only reinforces investor concerns that the Merrill acquisition has dramatically increased Bank of America's risk profile even as the quality of its own loan portfolio is deteriorating and the economic outlook remains uncertain."

CtW reiterated its recommendation that shareholders oust chairman and chief executive officer Ken Lewis, governance committee chair Tom Ryan and lead director Temple Sloan at the bank's April 29 shareholder meeting.

Three proxy voting services - RiskMetrics/ISS, Glass, Lewis & Co. and Egan-Jones Co. - are also recommending that shareholders vote against directors Lewis and Sloan among others, said CtW.

As previously noted, CtW also demanded that the Charlotte, N.C.-based bank "claw back" all 2008 Merrill Lynch bonuses of $1 million or more that were part of a total package of $3.6 billion in bonuses paid to Merrill Lynch employees in December.

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