Goldman Sachs and Bank of America shareholders have voted against proposals to separate the CEO and chairman roles at their respective banks. This decision runs counter to the recommendations of influential proxy advisors and the Norwegian sovereign wealth fund, which had urged shareholders to support the moves for enhanced corporate governance.
At Goldman’s annual shareholder meeting, the proposal garnered 33% of the vote, up from 16% last year. Despite this increase, it failed to achieve a majority. Luke Perlot, of the National Legal and Policy Center (NLPC), argued that Goldman CEO David Solomon’s decisions had led to substantial losses in its retail division and that a separation of roles would have mitigated such risks. A Goldman Sachs spokesperson reiterated the company’s stance that the current structure, with a strong lead independent director alongside the chairman-CEO role, is the most effective.
A similar proposal at Bank of America also failed, receiving 31% of shareholder votes, compared to 26% last year. Shareholders approved all management proposals, including on executive compensation, while rejecting all shareholder proposals. This outcome suggests that investors continue to trust the leadership and governance practices of both Goldman Sachs and Bank of America, despite the concerns raised by proxy advisors and some shareholders.
