Wall Street’s top bosses tested by shareholder proposals to strip them of power

Yahoo Finance04-24

Some of Wall Street’s most powerful bosses are facing new proposals this spring that would strip them of power by separating their CEO and chairman seats. Shareholders at Goldman Sachs (GS) and Bank ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2429869264?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/Hsl3mPGC.VYWrp5bibinCw--~B/aD01MzU4O3c9ODAzNzthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-uploaded-images/2024-01/42c18000-b468-11ee-9bfb-c50cd7681e33","is_english":true,"pubTime":"2024-04-24 16:01","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2429869264","market":"us","top_or_hot":-1,"title":"Wall Street’s top bosses tested by shareholder proposals to strip them of power","media":"Yahoo Finance","content":"<div>\n<p>Some of Wall Street’s most powerful bosses are facing new proposals this spring that would strip them of power by separating their CEO and chairman seats.\nShareholders at Goldman Sachs (GS) and Bank ...</p>\n\n<a href=\"https://finance.yahoo.com/news/wall-streets-top-bosses-tested-by-shareholder-proposals-to-strip-them-of-power-080127895.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wall Street’s top bosses tested by shareholder proposals to strip them of power</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWall Street’s top bosses tested by shareholder proposals to strip them of power\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-24 16:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/wall-streets-top-bosses-tested-by-shareholder-proposals-to-strip-them-of-power-080127895.html><strong>Yahoo Finance</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Some of Wall Street’s most powerful bosses are facing new proposals this spring that would strip them of power by separating their CEO and chairman seats.\nShareholders at Goldman Sachs (GS) and Bank ...</p>\n\n<a href=\"https://finance.yahoo.com/news/wall-streets-top-bosses-tested-by-shareholder-proposals-to-strip-them-of-power-080127895.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"KEY","symbol_name":"KeyCorp","start_time":0,"source_url":"https://finance.yahoo.com/news/wall-streets-top-bosses-tested-by-shareholder-proposals-to-strip-them-of-power-080127895.html","article_id":"2429869264","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Hsl3mPGC.VYWrp5bibinCw--~B/aD01MzU4O3c9ODAzNzthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-uploaded-images/2024-01/42c18000-b468-11ee-9bfb-c50cd7681e33"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2429869264","pubTimestamp":1713945687,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Some of Wall Street’s most powerful bosses are facing new proposals this spring that would strip them of power by separating their CEO and chairman seats.Shareholders at Goldman Sachs  and Bank of America  will decide on such a proposal Wednesday, ruling on whether David Solomon and Brian Moynihan get to keep their dual roles.In May, JPMorgan Chase’s  Jamie Dimon and BlackRock’s  Larry Fink will also face such tallies. And Citigroup  shareholders will vote next week to formalize a CEO-chair split in its bylaws even though the company has had an independent board chair since 2009.David Solomon, CEO and chairman of Goldman Sachs. . It’s not just Wall Street facing new calls for CEOs to give up some of their power. Thus far in 2024 shareholders have submitted 29 such proposals at S&P 500 companies, and more are expected, according to proxy advisory firm Institutional Shareholder Services .Investors will be watching to see how much support the new proposals get this year, especially at Gol","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"KEY":"KeyCorp","VOO":"Vanguard标普500ETF","LU1989771016.USD":"东方汇理环球老龄化投资基金 A2 Acc","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","SH":"标普500反向ETF","SDS":"两倍做空标普500ETF","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","OEX":"标普100",".SPX":"S&P 500 Index","BAC":"美国银行","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4534":"瑞士信贷持仓","ALL":"好事达","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","SPXU":"三倍做空标普500ETF","BK4162":"人寿与健康保险","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4535":"淡马锡持仓","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","SPY":"标普500ETF","UPRO":"三倍做多标普500ETF","AIG":"美国国际集团","OEF":"标普100指数ETF-iShares","ICE":"洲际交易所","BLK":"贝莱德","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","IVV":"标普500指数ETF","PRU":"保德信金融","SSO":"两倍做多标普500ETF","BK4589":"SVB概念","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","LU0211326839.USD":"TEMPLETON GLOBAL INCOME \"A\" (USD) INC","BK4504":"桥水持仓","ESG":"FlexShares STOXX US ESG Select Index Fund","LU1599440770.SGD":"FIDELITY GLOBAL DIVIDEND \"A\" (SGDHDG) INC"},"translate_title":"华尔街的高层老板们受到股东剥夺他们权力提案的考验","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AIG":1,"ALL":1,"BAC":1,"KEY":1,"ICE":1,"ESG":1,"BLK":1,"PRU":0.9,"VOO":0.77,"SPY":0.77,"OEX":0.6,"OEF":0.6,"SDS":0.6,"SH":0.6,"SPXU":0.6,"SSO":0.6,"UPRO":0.6,".SPX":0.6,"ESmain":0.6,"IVV":0.6},"content_text":"Some of Wall Street’s most powerful bosses are facing new proposals this spring that would strip them of power by separating their CEO and chairman seats.\nShareholders at Goldman Sachs (GS) and Bank of America (BAC) will decide on such a proposal Wednesday, ruling on whether David Solomon and Brian Moynihan get to keep their dual roles.\nIn May, JPMorgan Chase’s (JPM) Jamie Dimon and BlackRock’s (BLK) Larry Fink will also face such tallies. And Citigroup (C) shareholders will vote next week to formalize a CEO-chair split in its bylaws even though the company has had an independent board chair since 2009.\n\n\n\n  David Solomon, CEO and chairman of Goldman Sachs. (Tom Williams/CQ-Roll Call, Inc via Getty Images)\n \n\n  Tom Williams via Getty Images\n \n\nIt’s not just Wall Street facing new calls for CEOs to give up some of their power. Thus far in 2024 shareholders have submitted 29 such proposals at S&P 500 companies, and more are expected, according to proxy advisory firm Institutional Shareholder Services (ISS).\nOther well-known financial sector companies facing such proposals this year are insurance giants American International Group (AIG), Allstate Corporation (ALL), and Prudential Financial (PRU) along with NYSE parent company Intercontinental Exchange (ICE). Same goes for Cleveland regional bank KeyCorp (KEY).\n'Sometimes it helps, sometimes it doesn't'\nWhether to split the CEO and chairman positions has long been the subject of hot debate within the corporate world, pushed by activists who argue that it reduces conflicts within an organization.\nCompanies often push back by arguing that a lead director can offer just as much independent oversight.\nThe pressure to split the CEO and chairman roles in the US really ramped up in the aftermath of the 2008 financial crisis. Between 2010 and 2023, 76 companies within the S&P 500 did so, according to ISS. By the end of 2023, nearly 60% of S&P 500 companies had those roles split.\nLast year 69 companies in the S&P 500 faced such a proposal, nearly twice as many as in 2022. \nAll, however, failed.\nThe push to separate the CEO and chair roles \"tends to go up when stock prices don't go over well at a company and shareholders are looking for something to rattle management,\" Shivaram Rajgopal, a Columbia Business School professor of accounting and corporate finance, told Yahoo Finance.\n\n\n\n  Bank of America chairman and CEO Brian Moynihan. REUTERS/Evelyn Hockstein\n \n\n  REUTERS / Reuters\n \n\n\"Sometimes it helps, sometimes it doesn't and the reason why that happens is because it's not the institution per se, it is probably the individual and how he or she exercises power in the company,\" Rajgopal added.\nMany of these proposals are not typically successful and face long odds. Last year, the proposals at Goldman and Bank of America, for example, garnered just 16% and 26% support.\nInvestors will be watching to see how much support the new proposals get this year, especially at Goldman.\nSolomon is emerging from his most challenging year ever as boss as dealmaking slowed across Wall Street and he grappled with a costly exit from consumer banking as well as a series of high-profile departures from the firm.\nThe firm’s profit declined by 24% and Solomon’s annual compensation still rose by the same percentage — to $31 million. \nISS and Glass Lewis are advising shareholders to cast votes Wednesday in favor of separating Solomon’s roles.\n'An inherent conflict of interest'\nAnother vote that could get a lot of attention is at BlackRock, where Larry Fink will face the same proposal.\nThe head of the world’s largest money manager has become a target of political critics who charge that he and his firm are the preeminent example of \"woke investing\" as well as others who say BlackRock is not living up to its environmental, social and governance (ESG) commitments.\nThe shareholder that placed the proposal on this year’s ballot, Bluebell Capital Partners, falls into the latter camp. It said in its submission that \"there is an inherent conflict of interest for a CEO to act as her or his own oversight as chair.\"\n\n\n\n  BlackRock CEO and chairman Larry Fink. (Photo by JOEL SAGET/AFP via Getty Images)\n \n\n  JOEL SAGET via Getty Images\n \n\nFor Dimon and JPMorgan Chase, however, the proposal to revoke dual roles is certainly nothing new.\nThe country’s biggest bank has faced some kind of proposal calling for shareholders to vote for an independent chairman for all but three of the years since Dimon first held both the CEO and chair seats in 2007, according to JPMorgan's filings.\nIt is possible that it could happen one day, even if this year’s vote does not approve such a split. In 2022, JPMorgan’s board adopted a general policy to separate the chair and CEO positions once the 68-year-old Dimon steps down — \"subject to the board’s determination.\"\n\"The odds are Jamie will become chairman\" once he leaves as CEO, a person familiar with the situation told Yahoo Finance last year.\n\n\n\n  Jamie Dimon, chairman and CEO of JPMorgan Chase. REUTERS/Mike Segar\n \n\n  Reuters / Reuters\n \n\nDimon has made it clear he is not a fan of these proposals or the role played by proxy advisors ISS and Glass Lewis, which recommend how shareholders should vote on these proposals.\nHe criticized the firms for what he called a tendency to \"automatically judge directors unfavorably if they have a long tenure on the board\" and recommend \"split[ing] the chairman and CEO role when there is no evidence this makes a company better off.\"\nDavid Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance.\nClick here for in-depth analysis of the latest stock market news and events moving stock prices.\nRead the latest financial and business news from Yahoo Finance","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2429869264"}