December 05, 2009

If there is one thing the sad CEO search at Bank of America (BAC) underscores, it's this: The bank's board did a terrible job with succession planning.TheStreet.com weighs with a critical look, giving the board an "F" and assigning blame: "Primary blame for the lack of a succession plan lies at the feet of Hugh McColl, (Ken) Lewis' predecessor." He's faulted for packing the board with rubber-stamping cronies.

But why not blame CEO Ken Lewis He had been CEO and chairman of the bank long enough to set some firm succession plans in place. Even after the old cronies started stepping down in the wake of credit crunch, the issue did not get enough attention.The result is an on-going CEO search that is on the verge of disaster. The board may have no choice but to tap an interim CEO or ask Lewis to stay on or agree with several outside candidates who would like to shrink the bank.