Bank of America Corp investors peppered Chief Executive Officer Brian Moynihan with questions and complaints about its lending policies and dividend, but they rejected all but one of seven shareholder proposals at the company's annual meeting on Wednesday.
The bank said voters did approve a shareholder proposal to allow those with a 10 percent holding in the bank to call a special meeting.
Over the course of the nearly three-hour-long meeting, Moynihan tried to address shareholders' concerns about the bank's 1-cent-a-share quarterly dividend as well as complaints about glitches in the bank's mortgage modification process that have forced some customers out of their homes.
But shareholders also heard from clients and investors that reported the bank had helped them stay in their homes and had reduced their mortgage payments.
Shareholders approved the bank's 13 board nominees. Bank of America has appointed nine new directors since early last year in response to shareholder and government pressure for a board shake-up after the company reported billions of dollars in losses tied to its acquisition of Merrill Lynch & Co Inc.
Shareholders at the meeting, held at the Belk Theater of the North Carolina Blumenthal Performing Arts Center, voted on seven shareholder proposals in total, six of which they rejected. The rejected proposals included an advisory vote on executive compensation, an annual so-called say on pay and a proposal that the board should adopt and publicize a succession planning policy.
In his address to shareholders at the start of the meeting, Moynihan said the bank is not likely to raise its dividend until it has reported several quarters of earnings.
The largest U.S. bank also wants to have more certainty about the economic outlook before it increases its payout to shareholders, he said.
Moynihan, who became CEO at the start of the year, also said he believes the company's first-quarter earnings represent less than half its possible profit on a normalized basis. Earlier in the month, the bank reported first-quarter net income of $2.83 billion.
Responding to a shareholder question about the Securities and Exchange Commission charges against Goldman Sachs Group Inc , Moynihan said the bank has reviewed its structured debt activities and is satisfied with the business.
Shares of Bank of America were up 17 cents or 1.0 percent at $17.64 on Wednesday afternoon. The broader KBW Banks Index <.BKX> was up 1.3 percent.
(Reporting by Joe Rauch in Charlotte, additional reporting by Elinor Comlay in New York; Editing by Gerald E. McCormick)