After reviews on the pay structure by Kenneth R. Feinberg, the US pay czar, Bank of America cut compensation of two of its top executives.
Both Joe L. Price, Chief Financial Officer, and Barbara J. Desoer, mortgage unit President, will see their salary go down in 2009.
Both Joe L. Price, Chief Financial Officer, and Barbara J. Desoer, mortgage unit President, will see their salary go down in 2009.
Price's salary was lowered from $800,000 in 2008, to $500,000 this year. Compared to stock awards worth $2.3 million and option awards $1.5 million in 2008, the CFO will receive stock unit awards valued at $5.3 million in 2009.
Desoer, who's in charge of mortgage, home equity and insurance services will also see her annual salary trimmed to $500,000 from $800,000 last year. She will receive stock unit awards valued at $3.95 million, compared to a respective $2.3 million and $1.53 million in stock awards and option awards in 2008.
As for other compensation, such as tax preparation, payment of insurance premiums, use of corporate aircrafts and other perks, both executives are limitted to $25,000. If they have already received more in perks this year, they must repay the difference.
Bank of America is one of the first companies to adjust its executive compensation, but soon many others will have to follow in order to pay back the government the money from the Troubled Asset Relief Program.
The Washington Post
Desoer, who's in charge of mortgage, home equity and insurance services will also see her annual salary trimmed to $500,000 from $800,000 last year. She will receive stock unit awards valued at $3.95 million, compared to a respective $2.3 million and $1.53 million in stock awards and option awards in 2008.
As for other compensation, such as tax preparation, payment of insurance premiums, use of corporate aircrafts and other perks, both executives are limitted to $25,000. If they have already received more in perks this year, they must repay the difference.
Bank of America is one of the first companies to adjust its executive compensation, but soon many others will have to follow in order to pay back the government the money from the Troubled Asset Relief Program.
The Washington Post
Alexander
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