Shareholders should throw out Bank of America's corporate governance board following its decision to promote CEO Brian Moynihan to chairman of the board in October, CLSA bank analyst Mike Mayo said Friday.
"Bank of America said they missed their targets last year, and what happens to the CEO? He gets promoted to also have the chairman position," Mayo told CNBC's "Squawk Box." "Is that the way things work for the over 200,000 employees at Bank of America? Miss your targets, get promoted?"
Mayo also criticized Bank of America for its problems in past Federal Reserve stress tests , a $4 billion regulatory capital misstatement and for falling short in return on equity. He continued to say the bank does not have a time frame for any public financial target.
"They don't have the self-criticism that, say, JPMorgan has or Citigroup has. So this to me looks like poor governance," Mayo said.
Bank of America did not immediately respond to CNBC's request for comment.
Mayo made his comments after two proxy advisers-Glass Lewis and Institutional Shareholder Services-told shareholders they should vote against members of BofA 's corporate governance committee in response to the company's decision to appoint Moynihan chairman , The Wall Street Journal reported.
In 2009, shareholders passed a rule that said the roles should be split between two individuals. Bank of America told the Journal the rule was passed in the aftermath of the financial crisis and during the tenure of a different CEO, Kenneth Lewis.
Glass Lewis and ISS contend that shareholders were not consulted on the policy change.
Bank of America holds its annual shareholder meeting on May 6.