Sunday, October 4, 2009

Fortune: BofA CEO: $53 million Retirement Score

Author: Colin Barr of Fortune
NEW YORK (Fortune) -- Ken Lewis doesn't have a golden parachute, but he's all set for a comfortable landing -- unlike his long-suffering shareholders. The Bank of America (BAC, Fortune 500) chief executive officer said Wednesday he'll step aside at year-end after eight years at the helm.
Based on the company's most recent proxy statement, he will have $53 million in pension benefits waiting for him when he leaves. That should give him about $3.5 million a year in pension payouts for the rest of his life - at a time when people who bought the stock when he took the reins in 2001 are underwater on their investments.
Although the bank swore off employment contracts and eliminated golden parachutes seven years ago, Lewis can thank a pension plan that dates back decades for his rich retirement rewards.


Anonymous said...

For all those readers who are reading this - i hope you get to watch "Capitalism a Love Story" by Michael Moore. The movie demonstrates how CEOs of large banks and other CEO's of corporate America have seen a 600% in their compensation as the rank and file of the companies they run have seen negligible increase in wages in the last 20 years.

CEO bonuses should reflect percentage salary increases that the rank and file deserve . As 401K plans of ordinary citizens are showing 40% loss in values on an average its gross that KEN LEWIS is walking away with 53 million and after having sunk a global institution!

Crazy times!

The Firecracker Report said...

Great movie by Michael Moore, we agree it is a MUST WATCH!!