On Friday, Bank of America Corp (NYSE: BAC) filed a severance agreement for two of the company’s executives. Bank of America made a decision in September to cut the positions of Joe Price and Sallie Krawcheck in order to lower company costs.
But the $11 million severance package between the two of them is stirring up some controversy.
That’s a pretty big sum, critics say, for a time when the banks are struggling with payments.
The bank, however, says that it is modest in terms of the packages some executives receive, and it is appropriate for the status of these two executives...
Maybe comparing them to say, Ken Lewis, who received $125 million from Bank of America back in 2009...
But Krawcheck, former head of wealth and investment operations, will receive a modest lump sum of $5.15 million and Price, head of consumer banking, will receive a modest $4.15 million.
Each will also receive their salary for the next year, approximately $850,000, as well as health benefits for that year.
According to the agreement, Reuters says, the two former executives must agree to avoid competing with Bank of America and not to draw clients away for the next year. They also must keep their mouths shut regarding any negativity towards Bank of America.
Those are some pretty shiny golden parachutes for a company that can't stop getting sued...
BoA is seeking to cut costs, and its decision to remove these two positions is just the start of what is called Project New BAC. In total the bank plans to cut around 30,000 jobs to reduce costs and increase company revenue...
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