BofA Slashes Top Executive Pay - Analyst Blog

Bank of America Corporation (BAC) said on Friday that it has altered the compensation of its two top executives as a result of the pay czar’s review. The two executives, Chief Financial Officer Joe Price and mortgage head Barbara Desoer would receive $500,000 as salary for 2009, while they had earned $800,000 each as salary in 2008.

Mr. Price will also receive stock-unit awards valued at $5.25 million and Ms. Desoer will receive $3.95 million worth of stock-unit awards. During 2008, the executives received stock and option awards that increased the total 2008 compensation for Mr. Price to $4.02 million, and Ms. Desoer’s compensation to $7.42 million.

The pay czar, Kenneth Feinberg, decides compensation packages for the highest-paid executives at the seven firms, including BofA, that have received substantial support from the Troubled Asset Relief Program (TARP). The pay restrictions were imposed on these firms to enable them to repay government money. BofA received $45 billion under TARP and hasn’t said when it will repay.

The six other firms, whose top 25 executives received an average 50% lower pay last month by the order of the pay czar, are American International Group (AIG), Citigroup (C), Chrysler Financial, Chrysler Group LLC, General Motors and GMAC Inc (GJM). The move has become very sensitive for BofA, which is searching for a new CEO to replace Ken Lewis.

BofA Slashes Top Executive Pay – Analyst Blog

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