By Saabira Chaudhuri
Bank of New York Mellon Corp.'s shareholders on Tuesday voted
against a proposal that would have required Chief Executive Gerald
Hassell to give up the role of chairman.
At the bank's annual meeting in New York City on Tuesday, 78% of
shareholders voted against the proposal to split the roles of CEO
and chairman, a measure that was also opposed by Bank of New York
Mellon's board.
The proposal was presented by shareholder AFL-CIO Reserve Fund
on Tuesday and disclosed in the bank's proxy statement last month.
In response, Bank of New York Mellon's board had said it believed
the "combined Chairman/Chief Executive Officer is in the best
position to be aware of major issues facing our company, and to
identify and bring key risks and developments facing the company to
the Board's attention."
Separately on Tuesday, shareholders voted to approve the bank's
executive pay program, while Mr. Hassell rejected calls to spin off
the bank's asset management business at the annual meeting.
Shareholders also elected all 13 nominees to serve on Bank of New
York Mellon's board until the next annual meeting.
In a note to clients following the meeting, CLSA analyst Mike
Mayo said "the jury may remain out on the willingness of BNY Mellon
to pursue more aggressive restructuring", adding that Bank of New
York Mellon's management declined to study the effect of spinning
off its asset management business without a formal request from the
board.
A spokesman for BNY Mellon said Mr. Hassell in his Tuesday
presentation had "highlighted the benefits of investment management
to the company's business model and client base and indicated that
the company has examined a potential spinoff several times and
found it would not enhance the investment management business or
BNY Mellon over all."
The vote comes after Bank of New York Mellon on Monday said it
was boosting its quarterly dividend by 13%, following the Federal
Reserve's approval of its 2014 capital plan. The bank reports
first-quarter earnings later this month.
Shares of Bank of New York Mellon were down 0.2% in recent
after-hours trading. The stock has risen 23% in the past 12
months.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
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