by Deb Cupples | Corporate governance being what it is (in reality as opposed to theory), the boards of big public companies' tend to be packed with rubber-stamping lapdogs that lick the CEO's feet. Unfortunately, CEOs don't always strive to protect shareholders' interests, which is (in theory) the job of both execs and board members.
We need look no further than the financial meltdown that became obvious in 2008 for evidence that corporate execs and board members often ignore shareholders' longer-term interests -- that is, when execs and board members aren't outright working against shareholders' interests.
Yesterday, Bank of America shareholders voted Ken Lewis out of his Board chairmanship. He is still CEO, however, and the Board reportedly expressed unanimous support for Mr. Lewis -- meaning that the Board may be inclined to keep Mr. Lewis on as CEO.
As a BofA shareholder (albeit a tiny one), I'm not happy with the Board's declaration of support. Mr. Lewis, after all, was the one doing the steering while Bank of America was being driven into a ditch.
Mr. Lewis' ousting might compel some people to believe that corporate execs and board members really are accountable to shareholders. I question the validity of any such conclusion.