Vote could unseat Merrill board members

The vote would eliminate a staggered-board system that promises three-year terms to directors in place of annual elections.

In an effort to gain the trust of disgruntled shareholders, Merrill Lynch & Co. Inc. may adopt a measure that would make directors more vulnerable to efforts to oust them,
The move, which will be voted on at today’s meeting of Merrill’s 11-member board, would eliminate a widely criticized staggered-board system that promises three-year terms to directors in place of annual elections, according to the New York Post.
If the measure is adopted, the new election policy will go into effect in time for next year’s annual meeting in April 2009.
The three-year terms have been heavily criticized for protecting directors from being booted by angry investors, as only a few of the board’s directors face re-election each year.
New York-based Merrill posted large write-downs in the third and fourth quarters, and is expected to write down more this year due to the company’s vast exposure to risky securities.
Since June 1, shares of Merrill have fallen $47.48, or 51%, to $45.82.