Ken Lewis started at Bank of America 40 years ago, working his way up from junior credit analyst to the CEO suite. His employment contract at the nation’s largest banks obviously predates the government’s bailout of Bank of America. Yet pay czar Kenneth Feinberg may have a say on whether he cashes in on retirement benefits and accumulated compensation worth $125 million.
Some argue it is simply inappropriate for Feinberg to try to tackle Lewis’ retirement package.
“A fair reading of the situation would be he is getting what he is entitled to and game over,” said Alan Johnson, a Wall Street compensation consultant.
But to many, Lewis is a poster child for the crisis that struck Wall Street banks last year, nearly collapsing the financial sector and resulting in taxpayers spending hundreds of billions of dollars to bail out firms like Bank of America.
“The Obama administration has to use every tool at its disposal to fix the pay problem, particularly the golden parachute for failed executives,” said Richard Ferlauto, director of corporate governance and pension investments for the American Federation of State, County and Municipal Employees, one of the largest U.S. labor unions.
Should Lewis get his retirement package in full? Leave your answer in the comments section.
Trackback
27 comments so far
Previous | 2 | 1 | Next
NO!!!!!!!
- Posted by Paul VelascoYes, he should get paid if it is a contractual requirement. To do anything else is to ignore the law because it is popular politics. I do agree that his compensation should at least be delayed until B of A
- Posted by timpays back any money owed to the government. I also agree that much of B of A’s problems came from government coersion. Do everyone a favor, fire the Pay Csar and tell BA that they can pay out the executive packages that they contractually owe as soon as BA is off the hook with the governement.
YES! Ken Lewis deserves his retirement money.
He dedicated years of his life to the company. He avoided aggressive take-overs when stocks were flying high. Maybe the Merill deal wasn’t good, but most probably it wasn’t bad either. Time will tell. Yes, he could wait a bit and buy Merill for pennies, but as Warren Buffett said, by buying it earlier, most probably he saved the whole US financial system.
Has anyone tried to evaluate the value of the real estate that BofA got in that deal? Over 10,000 branch offices in the whole US added to the 6,000 already owned. In several years when the dust settles down, BofA will be probably the largest bank in US. Oh, and don’t forget about that Countrywide deal.
If Mr Lewis wasn’t forced to step down, then I would be 100% sure that BofA stock will be trading for above $100 5-10 years from now. Now I’m not sure, because the new CEO may not be as good.
BTW, do you know why Warren Buffet bought the BofA stock in the spring of 2008? The answer is: because Ken Lewis did forgo all his stock options, because he didn’t want to dilute shareholders equity.
To all those who say he doesn’t deserve his pay: READ THE LAST FIVE 10-Ks OF BOA BEFORE YOU SPEAK!
Ken Lewis is one of the best and honest executives. Period.
Apparently the media like to give a scapegoat to the misinformed public. Probably to redirect public focus from the true financial criminals.
How about the people who helped in creating this whole financial mess? Namely Alan Greenspan and Bill Clinton who created the housing bubble. Why the press is not telling the truth about senator Obama who with other senators and lawyers in 2004 were suing big banks for restricting lending due to “housing bubble”? In 2008 the same banks were being sued for doing what they were forced to do 2004. Now Mr Obama won the Nobel Prize.
- Posted by LeoDoes he deserve it? What did he do to for the world peace, except promising withdrawal of US troops from Afghanistan and Iraq? That’s funny, Ken Lewis got his bonuses for the work he did, while Barack Obama got his prize for empty promises.
Much better article and a much better question would be: Should Barrack Obama get his prize?
He saw his bank on the verge of collapse. Only because of Gov funds BofA was able to avoid bankruptcy. Why he should be paid anything until his bank pays back gov money.
Many people under impression that Ken Lewis and Co have some unique SKILLS that put them apart from simple people.
- Posted by SergeyJust revisit they actions during 2008/2009. Bunch of guys complitly disconnected from reality. They are masters of corporate politics and bureaucracy.
well lets put this into prospective. did he accumulate the 125 million over 40 years or did it all come to him in the last 5. thats the question?? if he accumulated it over the life of his service then he is entitled. but if its just a corporate overpay “like usual”. then I say “no”. cause money gained in the short term was not worked for. and in essence, giving him those kind of funds seem more of a payoff then a salary.I know when someone gives me a check and i try to cash it at their bank. i am charged 5.00 check cashing fee for cashing their check at their bank.soo why the fee?? you want me to approve 125 million dollar payout. I now see where the check cashing fees go.
- Posted by mikeFunny how now one gives out when things are going their way. 40 years in the making of BoA the only thing we’ll remember is it’s last year as a CEO. Give him what he’s entitle.
- Posted by CedricWhere has everyone been. The congress, wall st and the offshore hedge funds set this entire disaster up and then tried to cover the failures up. Warren Buffett on his last interview stated that if B Of A had not taken Merrill when they did our value of currency would be next to nothing. the real thieves are the congress and Paulson who helped setup this fiasco. Has Lewis been perfect. No> but he has done the best that anyone in position could have done with the threat of the most powerful government in the world threatening you from day one in the downturn and demise of our financial system. The FDIC is daily closing banks that are not bankrupt but are bankrupted by the fdic. look at the takeovers and the new bank that gets the assets they are making a fortune while the FDIC rolls up the banking system. I do not see anyone standing up to the takeover of our financial system. People keep sticking their heads in the sand. Lewis deserves the retirement, yes his stock could have been worth nothing just like yours and mine that we hold in us companies that our government appears willing to take at any time.
- Posted by d crocker