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Bank of America Execs Get $11 Million for Being Fired

By
Education & Training with Browning Real Estate School/REO Institute

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...

Posted by

James A. Browning MRE, CIPS, CDEI, REOCertified®, CEC, BPOR, ShortSaleCertified®, SFR

NAR, ABR, REBAC, CAR, CREOBA, REO Institute, National Speaker/Educator

CEO, Founder, REO Institute

Author, Best Selling: BPO & REO Simplified, "How to Work With Asset Managers"!

Office: 303-465-2889

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Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

In my efforts to help out in these hard times I will let them fire me for half that.  Of course they would have hire me first.  :)  The entire thing makes me sick.

Oct 10, 2011 07:02 AM
Riccardo Palagi
EagleBoiseRealEstate.com - Boise, ID
EagleBoiseRealEstate.com

James, I understand the "obscene money" point here and I don't necessarily disagree considering that my entire family, from hence forth, will probably NEVER see that kind of money:-)  But, I think nullifying contracts "out of hand" can have some very serious and down right scary repercussions.  The GM takeover comes to mind.  We pat ourselves on the back for all of the "too rich" that got shafted in that nightmare but the VAST majority of those bond holders that got shafted were NOT the private jet owning "millionaires" and "billionaires" that we so frequently here about in our current political climate...just saying:-)

Riccardo
My Place

Oct 10, 2011 12:56 PM
Anonymous
Sandi

Talk about the golden parachute - this is outrageous - and the public is not going to stand for that.

If I ever get fired, I hope to receive a severance package - they do not deserve this - and should

decline this package - getting rewarded for doing wrong seems to be the theme of this country. When is it going to stop.  When your fired, you leave with nothing!!!!  Is Obama signing these checks?

Oct 14, 2011 05:50 AM
#3