Bank of America Corp. (BAC) shareholders voted to unseat Kenneth Lewis as chairman of the largest U.S. bank in a move which industry experts said could weaken his powers as chief executive and eventually lead to his being stripped off that title as well.

At the Charlotte, North Carolina-based firm’s annual meeting on Wednesday, a third of shareholders opposed Lewis’ re-election to the board. While Bank of America assured that Lewis would remain in the driver’s seat in terms of daily administration of the company, 16-year board veteran Walter E. Massey was named as his replacement in the chairman’s role.

The annual meeting continued for 4 hours as angry shareholders held the management accountable for accepting two government bailouts and not providing them with enough disclosure on deepening losses at Merrill Lynch before signing the deal.

Massey, who has been appointed with the responsibility of overseeing Lewis, is not an experienced financial executive, but an academic. He has also been seen as someone likely to back Lewis on key decisions. Investors, however, applauded the move and took shares up nearly 5% to $9.10 in midday trading on the New York Stock Exchange.

“BAC” Free Stock Analysis: Buy? Sell? Hold?
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