Regions Bank withdraws from Business Council of Alabama

Regions Bank on Tuesday announced it was leaving the Business Council of Alabama — a day after Alabama Power's withdrawal from the group — amid a fight over the future of BCA President and CEO Bill Canary.

"After careful and thoughtful review, Regions Bank has evaluated its investment in the Business Council of Alabama and is withdrawing from the BCA effective immediately," Evelyn Mitchell, senior vice president of media relations and issues management, wrote in response to an Advertiser inquiry Tuesday. "We remain committed to supporting public policy and economic development initiatives that benefit Alabama and will direct our resources toward other efforts to strengthen the business climate and support economic growth in the state."

The move comes amid a clash between a group of BCA members who criticize Canary as ineffective and want him out, and BCA leadership, which is trying to create an orderly transition to a new chief.

Perry Hand, the president of BCA's board of directors, said Tuesday that Alabama Power and Regions were part of several companies seeking a change of leadership in the business organization.

“I think there’s a stream of them inside that group,” he said. “I think Alabama Power was the first shoe to drop.”

Hand, the chairman of Volkert Construction Co., said in a phone interview — conducted before Regions' announcement Tuesday — that BCA officials met with representatives from six companies, including Alabama Power, Blue Cross Blue Shield and Regions,  over the last few months over their concerns about Canary. At a meeting earlier this month, Hand said, the companies demanded Canary announce his retirement in June and depart as leader of the organization no later than Sept. 1.

Leadership of BCA resisted that, he said, in part because of their concern for an orderly transition.

“BCA has never had a succession plan until we developed one this year,” he said. “Some of these (past) decisions were not made very well.”

Alabama Power spokesman Michael Sznajderman wrote in an email Tuesday that “we have had concerns about the effectiveness and direction of BCA for some time. That is really all we have to say. We cannot speak for any others on this issue.”

Koko Mackin, a spokeswoman for Blue Cross Blue Shield of Alabama, said in an email Tuesday the company had no comment on its relationship with BCA.

Regions Bank is the only Fortune 500 company headquartered in Alabama. It employs over 20,000 people in branches in the South and Midwest.

Alabama Power and BCA went through divorce by correspondence Monday, with Alabama Power President and CEO Mark Crosswhite writing in a letter that BCA’s leadership had “squandered our collective corporate goodwill, allowed its financial health to decline, and become a divisive force in our state.”

Hand wrote his own letter that said Alabama Power had not paid its membership dues since April and that Alabama Power had rejected compromise proposals. Hand said Tuesday Alabama Power was “one of our largest contributors,” though he declined to name a specific level.

The specific areas of concern and disagreement are not clear. Hand said the companies felt Canary, who has led BCA since 2003, had become “ineffective,” though he said it was “more a general concern” rather than a specific complaint. Hand said the executive board of BCA “totally disagree(s)” with that assessment.

 “You become very unpopular when you’re effective,” he said. “When you win, you make some people happy and some people unhappy.”

While BCA remains a strong force on Goat Hill and in statewide elections – the group has spent more than $1.8 million on political campaigns this year – it has sometimes struggled on larger issues in the Legislature in recent years. It also lacks the clout of Alabama Power, which has almost unmatched influence in both parties.

The departures come weeks before several high-profile GOP contests in the July 17 runoff. Through May 29, BCA’s Progress PAC had given Attorney General Steve Marshall $260,000. The organization spent $195,000 on Alabama Chief Justice Lyn Stuart’s campaign. Stuart lost the Republican nomination for the office to Justice Tom Parker.

Hand also said the companies put forward Seth Hammett, a PowerSouth executive and former Alabama House Speaker, as an interim CEO if the replacement of Canary took too long. A message seeking comment was left with Hammett Tuesday.

Alabama Power was "one of our largest contributors," Hand said, adding BCA would miss "their leadership and support." But, he said, the parties have been civil in their disagreements.

"There have been no arguments," Hand said. "All the meetings we’ve had have been gentlemanly, point-counterpoint. No anger, no frustration."