This is interesting . I believe Ken Lewis should stay on .
I guess I am not the only one who feels this way .
CHARLOTTE, N.C., Nov 20 (Reuters) - Bank of America Corp's (
BAC.N) chief executive, scheduled to retire at year-end, could gain enough support from shareholders to keep his job, a veteran analyst said on Friday.
Richard Bove of Rochdale Securities said it appeared that the bank's management and owners -- not including the U.S. government -- want Lewis back as CEO.
"He knows this company better than anyone else and he knows how to operate it ... Convincing him to return would be the biggest morale builder that management could get," the Rochdale Securities' analyst said in his client note.
"The attack on Lewis comes from politicians and bureaucrats who have amply demonstrated their lack of knowledge of the company and the banking business," he wrote in his second recent note arguing for the CEO to stay.
Lewis announced his retirement in September, as criticism of the bank's purchase of Merrill Lynch & Co grew. He sat at the center of legal probes into disclosures about bonus payments and losses tied to the deal.
The search for Lewis' replacement, now in its second month, has become a favorite topic of speculation on Wall Street, particularly as several high profile executives have turned down what would typically be a coveted position.
Some shareholders, however, believe the company's best course is to continue its search for Lewis' successor.
"I'm a Ken Lewis fan, but its in the best interest of the company to find a new executive and move forward," said Walter Todd, co-chief investment officer at Greenwood Capital Associates LLC, which owns Bank of America shares. Todd said Lewis retaking the job would be messy for the bank.
"Its tough to go back down that road, and, I think, would be a step back for the company," he said.
Another investor, Mendon Capital Advisors Corp President Anton Schutz, said a return to Lewis would merely forestall the key issues surrounding the CEO search: How will the company repay its $45 billion in government bailout aid and what's the long-term strategy?
"Right, now, everyone's sitting around and waiting, but we need to know who's going to run the company before we'll get any clarity on those issues," he said.
Rochdale's Bove said while the government is looking to split the company up in a similar manner to Citigroup Inc (
C.N), representatives of the management and shareholders on the board oppose such a plan.
"This difference of opinion weakened the possibility of an insider to being selected to be the next CEO," Bove said.