Merrill Lynch to Reform Its Board of Directors, The Journal Reports

(NewsVisual, powered by IntellectSpace) -- After having suffered $6.6 billion in write-downs due to the subprime mortgage debacle, Merrill Lynch & Co Inc (NYSE:MER) has begun the process of reforming its own structures of corporate governance by shortening the electoral terms of the members of its Board of Directors, according to The Wall Street Journal.

The investment-banking firm’s nominating committee recommended that it “eliminate its practice of electing directors of its board to multi-year terms,” The Journal reported in an online article on Thursday.

“The process of ‘destaggering’ boards is being widely adopted in corporate America under pressure from shareholder activists,” The Journal added by way of explanation.

Investors will be concerned, however, that it might not the firm might not be able to attract the best candidates to serve as its Directors if they must stand for election on an annual basis.

Will the firm be able to attract the most experienced individuals with the ability to make sound judgments on complex financial issues?

NewsVisual decided to create an IntellectSpace Knowledge Map in order to illustrate the business connections of Merrill Lynch’s Directors as a method for assessing their financial acumen.

The Knowledge Map shows that the following Directors have experience serving on several corporate boards:

Merrill Director Armando M Codina, the CEO/President of the Flagler Development Group, also has board room experience with General Motors Corp, Home Depot Inc, AMR Corp, BellSouth Corp, and Florida Power & Light Co.

Similarly, Merrill Director Aulana L Peters, a former Commissioner of the Securities and Exchange Commission, has board room experience with the Northup Grumman Co, the John Deere Co, and the 3M Co.

In addition, Merrill Director Ann N Reese also has experience serving on the boards of Xerox Corp, the Kmart Holding Corp, Jones Apparel Group, the Sears Holdings Corp, and Jafra Cosmetics Inc.

To view the outside corporate involvement of the other Merrill Directors, click here for an interactive and fuller version of this IntellectSpace Knowledge Map.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).