Wachovia Corp. announced Thursday that chief executive and president Ken Thompson, who has been under fire for the company's recent earnings problems and stock slide, will give up his chairman position.

Lead independent director Lanty Smith will assume the post of non-executive chairman.

"At this challenging time for the financial services industry and for Wachovia, my management team and I are pleased that Lanty agreed to assume the role and responsibilities of chairman, freeing me to focus 100 percent of my time and attention on guiding the company through the current environment and building and delivering enhanced value for the benefit of our shareholders, customers and employees," Thompson said in a statement.

Thompson will remain a director and report to the full board. He keeps full responsibility for managing the Charlotte-based bank.

Splitting the chairman and CEO posts has long been a cause of corporate governance advocates, arguing it provides a stronger check on management. Wachovia had previously resisted calls to make the change.

Smith has served as a director since 1987 and as lead independent director since 2000. He is chairman and CEO of a Raleigh merchant bank.

At last month's shareholder meeting, Thompson resisted calls to step down from irate shareholders. Smith has said Thompson has the board's backing.