BofA's Ken Lewis to get no '09 salary, bonus (attorney, spokesman, crimes)
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By STEVENSON JACOBS and VINNEE TONG, AP Business Writers Stevenson Jacobs And Vinnee Tong, Ap Business Writers – 2 hrs 40 mins ago
NEW YORK – Bank of America Corp.'s outgoing CEO, Ken Lewis, will get no salary or bonus for 2009 under an agreement with the government pay czar, who is scrutinizing compensation at bailed-out banks.
Kenneth Feinberg, the U.S. Treasury Department's special master for compensation, suggested that Lewis should get no pay for the year and Lewis agreed, Bank of America spokesman Robert Stickler said Thursday.
In fact, Lewis will pay back about $1 million he has received so far out of a $1.5 million annual salary.
"He will write a check to the company," Stickler said.
The bank spokesman also added that Lewis agreed to the proposal because he felt it was not in the bank's best interest "to get into a dispute with the paymaster."
Wall Street has been eagerly awaiting Feinberg's decisions about pay for 75 of the highest-earning executives at seven firms that got the most taxpayer money. Other companies under Feinberg's scrutiny include American International Group Inc., General Motors, Chrysler and Chrysler Financial.
Treasury spokesman Andrew Williams declined to comment on Lewis' compensation, saying only that Feinberg would seek to "strike the right balance" in setting pay for top executives of firms that received significant government help.
Lewis, who is 62, hastily announced last month that he will step down as CEO by Dec. 31, which will cap off a tumultuous year when BofA has faced accusations it misled shareholders about its acquisition of the investment bank Merrill Lynch & Co.
BofA had no successor in place, leading many to think that his quick exit had surprised the board. It said a replacement would be chosen before Lewis leaves.
The Merrill deal is being investigated by both the Securities and Exchange Commission and New York Attorney General Andrew Cuomo.
Cuomo's office is trying to determine whether BofA misled shareholders about $3.6 billion in bonuses paid to Merrill employees and the investment bank's mortgage lending losses, as well as whether BofA failed to tell shareholders that it considered backing out of the deal before it closed on Jan. 1.
Lewis was first hired as a credit analyst in 1969 at North Carolina National Bank, in Charlotte, N.C. That bank was a predecessor of NationsBank and later Bank of America. He moved through various positions until he was named CEO of Bank of America in April 2001. He was stripped of the chairman title earlier this year.
link:
BofA's Ken Lewis to get no '09 salary, bonus - Yahoo! News (http://news.yahoo.com/s/ap/20091015/ap_on_bi_ge/us_bank_of_america_ceo_pay - broken link)
By STEVENSON JACOBS and VINNEE TONG, AP Business Writers Stevenson Jacobs And Vinnee Tong, Ap Business Writers – 2 hrs 40 mins ago
NEW YORK – Bank of America Corp.'s outgoing CEO, Ken Lewis, will get no salary or bonus for 2009 under an agreement with the government pay czar, who is scrutinizing compensation at bailed-out banks.
Kenneth Feinberg, the U.S. Treasury Department's special master for compensation, suggested that Lewis should get no pay for the year and Lewis agreed, Bank of America spokesman Robert Stickler said Thursday.
In fact, Lewis will pay back about $1 million he has received so far out of a $1.5 million annual salary.
"He will write a check to the company," Stickler said.
The bank spokesman also added that Lewis agreed to the proposal because he felt it was not in the bank's best interest "to get into a dispute with the paymaster."
Wall Street has been eagerly awaiting Feinberg's decisions about pay for 75 of the highest-earning executives at seven firms that got the most taxpayer money. Other companies under Feinberg's scrutiny include American International Group Inc., General Motors, Chrysler and Chrysler Financial.
Treasury spokesman Andrew Williams declined to comment on Lewis' compensation, saying only that Feinberg would seek to "strike the right balance" in setting pay for top executives of firms that received significant government help.
Lewis, who is 62, hastily announced last month that he will step down as CEO by Dec. 31, which will cap off a tumultuous year when BofA has faced accusations it misled shareholders about its acquisition of the investment bank Merrill Lynch & Co.
BofA had no successor in place, leading many to think that his quick exit had surprised the board. It said a replacement would be chosen before Lewis leaves.
The Merrill deal is being investigated by both the Securities and Exchange Commission and New York Attorney General Andrew Cuomo.
Cuomo's office is trying to determine whether BofA misled shareholders about $3.6 billion in bonuses paid to Merrill employees and the investment bank's mortgage lending losses, as well as whether BofA failed to tell shareholders that it considered backing out of the deal before it closed on Jan. 1.
Lewis was first hired as a credit analyst in 1969 at North Carolina National Bank, in Charlotte, N.C. That bank was a predecessor of NationsBank and later Bank of America. He moved through various positions until he was named CEO of Bank of America in April 2001. He was stripped of the chairman title earlier this year.
link:
BofA's Ken Lewis to get no '09 salary, bonus - Yahoo! News (http://news.yahoo.com/s/ap/20091015/ap_on_bi_ge/us_bank_of_america_ceo_pay - broken link)
Sounds like a plea bargain. If Ken Lewis is guilty of a crime, the pay czar needs to ask for a criminal investigation.
not been watching the news or reading about it I take it?
You missed my point. The pay czar should not be making any arrangements with Ken Lewis given the fact that he is likely guilty of crimes. Charge him, try him in a court of law and then let him make restitution. Don't try to arrange restituition outside a court of law.
By STEVENSON JACOBS and VINNEE TONG, AP Business Writers Stevenson Jacobs And Vinnee Tong, Ap Business Writers – 2 hrs 40 mins ago
NEW YORK – Bank of America Corp.'s outgoing CEO, Ken Lewis, will get no salary or bonus for 2009 under an agreement with the government pay czar, who is scrutinizing compensation at bailed-out banks.
Kenneth Feinberg, the U.S. Treasury Department's special master for compensation, suggested that Lewis should get no pay for the year and Lewis agreed, Bank of America spokesman Robert Stickler said Thursday.
In fact, Lewis will pay back about $1 million he has received so far out of a $1.5 million annual salary.
"He will write a check to the company," Stickler said.
The bank spokesman also added that Lewis agreed to the proposal because he felt it was not in the bank's best interest "to get into a dispute with the paymaster."
Wall Street has been eagerly awaiting Feinberg's decisions about pay for 75 of the highest-earning executives at seven firms that got the most taxpayer money. Other companies under Feinberg's scrutiny include American International Group Inc., General Motors, Chrysler and Chrysler Financial.
Treasury spokesman Andrew Williams declined to comment on Lewis' compensation, saying only that Feinberg would seek to "strike the right balance" in setting pay for top executives of firms that received significant government help.
Lewis, who is 62, hastily announced last month that he will step down as CEO by Dec. 31, which will cap off a tumultuous year when BofA has faced accusations it misled shareholders about its acquisition of the investment bank Merrill Lynch & Co.
BofA had no successor in place, leading many to think that his quick exit had surprised the board. It said a replacement would be chosen before Lewis leaves.
The Merrill deal is being investigated by both the Securities and Exchange Commission and New York Attorney General Andrew Cuomo.
Cuomo's office is trying to determine whether BofA misled shareholders about $3.6 billion in bonuses paid to Merrill employees and the investment bank's mortgage lending losses, as well as whether BofA failed to tell shareholders that it considered backing out of the deal before it closed on Jan. 1.
Lewis was first hired as a credit analyst in 1969 at North Carolina National Bank, in Charlotte, N.C. That bank was a predecessor of NationsBank and later Bank of America. He moved through various positions until he was named CEO of Bank of America in April 2001. He was stripped of the chairman title earlier this year.
link:
BofA's Ken Lewis to get no '09 salary, bonus - Yahoo! News (http://news.yahoo.com/s/ap/20091015/ap_on_bi_ge/us_bank_of_america_ceo_pay - broken link)
You missed my point. The pay czar should not be making any arrangements with Ken Lewis given the fact that he is likely guilty of crimes. Charge him, try him in a court of law and then let him make restitution. Don't try to arrange restituition outside a court of law.
that money needs to be given back now before it is sitting offshore...this is separate of the investigation and upcoming trial
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