Bank of America chief executive Ken Lewis has lost his role as chairman after a revolt by shareholders compelled the board to put veteran director Walter Massey in his stead.

Mr Lewis will stay on as chief executive of the company that now owns Merrill Lynch with its major brokerage and wealth management units, but the passing of the proposal to separate the dual role he has had since taking over eight years ago will weaken his control, according to the Financial Times. He survived a separate no-confidence vote that called for him and the board to quit.

It is very rare for institutional investors to vote down companies’ recommendations; the proposal was backed by unions, pension funds, proxy firms and dissident individual shareholders.

In a statement, the bank said Mr Lewis had the unanimous backing of the board to continue in his role as chief executive.