(A former Bank of America employee has joined the fledgling "debtors' revolt" movement. He told consumers that "BOFA will stop at nothing to turn an insane profit at your expense.")
Pay Czar Kenneth Feinberg Plans To Cut Salaries, Increase Stock Compensation
The Obama administration's Pay Czar is planning to clamp down on compensation at firms receiving large sums of government aid by cutting annual cash salaries for many of the top employees under his authority, according to people familiar with the matter.
Instead of awarding large cash salaries, Kenneth Feinberg is planning to shift a chunk of an employee's annual salary into stock that cannot be accessed for several years, these people said. Such a move, the most intrusive yet into corporate compensation, would mark the government's first effort to curb the take-home pay of everyone from auto executives to financial traders.
Federal examiner reviewing Lewis' BofA compensation
The Federal pay czar, charged with curbing pay at banks that received federal aid, is reviewing Bank of America chief executive Ken Lewis' accumulated benefits, including retirement and stock holdings.
The review follows Lewis' announcement last week that he would retire Dec. 31. He receives no special exit payments or perks, but has accumulated substantial holdings during his 40 years helping build the nation's largest bank.
By one estimate, the tally is roughly $126 million, including a pension of about $53 million and $57 million in bank stock.
On Monday, a Treasury Department spokesperson said his retirement benefits, stock awarded as compensation and other accrued amounts are being reviewed by Kenneth Feinberg, the special master for executive compensation.
Last week, pay consultant David Schmidt said Lewis' holdings are "untouchable" because much of it had been earned over years. Most of the pension payment, for example, is from a plan frozen in 2002. The stock includes shares Lewis bought personally.
"I'd be amazed if (Feinberg is) able to touch anything of any substance," said Schmidt, who is with New York pay consulting firm James F. Reda & Associates. "But," he added, "this is all new for everybody."
Feinberg's appointment is part of a government effort to prevent future financial disasters. His job includes helping ensure pay plans for bank executives do not encourage excessive risk-taking, which has been blamed in part for the current crisis.
He can demand changes for top executives' pay at firms that received exceptional government assistance. At $45 billion, Bank of America is among the largest recipients of federal bailout funds. The bank has had multiple meetings with Feinberg and his team as part of the overall pay plan review.
"Mr. Lewis does not have a management contract and does not get an exit package from Bank of America," bank spokesman Bob Stickler said on Monday. "His pension and other benefits were earned over a 40-year career at the company."
Benmosche, AIG CEO, Has $10.5 Million Pay Package Approved By Pay Czar
AIG Chief Executive Robert Benmosche's $10.5 million annual pay package has been formally approved by Obama administration pay czar Kenneth Feinberg.
According to a letter to Treasury's compensation committee dated Oct. 2, Feinberg said Benmosche's package, $4 million of which is in stock options, is comparable to that of other CEOs.
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Sources: Wall Street Journal, Huffington Post, TIME, Whitehouse.gov, McClatchy Newspapers, Charlotte Observer, Reuters, Youtube, Google Maps
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