Brian Moynihan’s BofA future in hands of shareholders

Brian Moynihan wants another year to make things right at Bank of America, but that’s now up to the shareholders.

Moynihan, the bank’s chairman and CEO, said Monday in a letter to shareholders that he’ll give the Charlotte, NC-based bank’s stakeholders the choice to split his roles — but they’ll likely have to wait until next year’s annual meeting.

The 55-year-old bank honcho has held both titles since October of last year. They allow him to have greater control over how the bank operates — without putting the decision up for a vote.

The letter, signed by Moynihan and independent director Jack Bovender, is a tacit admission that investors “should have been given the opportunity to vote to ratify the board’s bylaw change,” the bank said in the Monday letter.

“We appreciate the candor with which stockholders have shared their insights, both in support of the decision and in expressing reservations about the process,” they added.

That’s crucial for Moynihan, under whom the bank in the last year alone has finalized a $17 billion settlement with the US government over its bad mortgage-backed securities; had its dividend delayed because of an accounting snafu; and was denied full approval for its “stress test” plans by the Federal Reserve.

And earlier this year, the board cut Moynihan’s compensation for last year by more than $1 million to $13 million.

The surprise announcement — two days before this year’s annual meeting — comes after analysts have asked for more information about breaking up the bank into multiple companies.

Moynihan isn’t the only bank CEO to head a bank board, as JPMorgan’s Jamie Dimon and Goldman Sachs’ Lloyd Blankfein also occupy the dual roles. Both those CEOs have survived shareholder measures to split the roles during the last five years.

BofA shares rose 2 percent Monday, to $16.44.