Being boss is enough

9 May 2008 By Rob Cox Follow @rob1cox

Wachovia relieved CEO Ken Thompson of the chairmanship. Because it follows stinging writedowns, this looks like criticism. That may be merited, but it’s unfortunate. Investors should support separating the two roles in good times as well as bad.

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Wachovia on Thursday said its board decided to split the roles of chairman and chief executive, naming lead independent director Lanty Smith as nonexecutive chairman, a title previously held by chief executive Ken Thompson.

"At this challenging time for the financial services industry and for Wachovia, my management team and I are pleased that Lanty agreed to assume the role and responsibilities of Chairman, freeing me to focus 100% of my time and attention on guiding the company through the current environment and building and delivering enhanced value for the benefit of our shareholders, customers and employees", said Thompson in a statement.

Smith has served as a director since 1987 and as lead independent director since 2000. He runs Tippet Capital, a merchant banking firm headquartered in Raleigh, and is a former partner with the international law firm of Jones Day.

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