Bailed Out Bank Of America Hands Sallie Krawcheck $6 Million Severance For 2 Years Of Work
Sallie Krawcheck was hired by Ken Lewis at BofA in August of 2009 after a career at Citigroup where she was CFO when fired by Vikram Pandit in 2008, with no severance.
After just 24 months at Bank of America she was fired last month by Brian Moynihan, and it was announced yesterday that she is set to receive $6 million in severance.
Keep this in mind when BofA supplicates before Geithner for its next taxpayer bailout.
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Bank of America, the lender seeking to trim expenses by eliminating at least 30,000 jobs, will pay former wealth-management division head Sallie L. Krawcheck $6 million after her dismissal last month.
That sum includes one year of her former salary, or $850,000, and a one-time payment of $5.15 million to be awarded in 2012, the Charlotte, North Carolina-based bank said yesterday in a filing. Joseph Price, whose position was also eliminated, gets a $5 million package, the bank said.
Chief Executive Officer Brian T. Moynihan ousted Krawcheck and Price in September as part of his effort to streamline the biggest U.S. bank amid mortgage-related losses and a 56 percent share decline this year. His target is to reduce annual costs at consumer banking units by $5 billion, mostly through job cuts.
“This is yet another story about a corporate executive getting significant amounts of money after they’ve left their employer,” said Richard Lipstein, a managing director for headhunter Boyden Global Executive Search. “She was part of a restructuring that eliminated a layer of management; at her level, there are certain obligations that have to be fulfilled if you leave for non-cause.”
Oct 11, 2011 at 12:40 PM
Reader Comments (13)
http://ycharts.com/companies/BAC/market_cap#zoom=10
There's been a sign up at the corner of LaSalle and Jackson here in Chicago for at least 2 weeks now: "Honk and Indict."
There's been a lot more honking lately, followed by loud cheering from the growing swarm of protesters. It's infectious.
There's even an #OccupyElkhart now. That stain is particularly nasty for President Obanksta, who visited the place twice to tell them how he was gonna turn it all around--only to don a larger pair of BAC kneepads.
"Rife
That the USA is rife with corruption at every level is finally catching public attention. The so-called "Wall Street" protests are a widespread movement against the plutocracy. With an irony of namesake, the Wall Street Journal reports the realized knowledge of Emily Graham: "I'm basically sick of corporate greed. I'm frustrated that companies can pollute on a catastrophic level. They get all the tax breaks." They also get all the patent protection they need, at the expense of inventors. The Federal courts, from district court judges to the CAFC and Supreme Court, are thoroughly packed with incredibly corrupt judges who pervert the law, and decency, to serve corporate interests. The continuing conflicted contortions of CAFC case law bear stark witness to the depravity. New patent legislation just became law over the unanimous objections of universities, small businesses and individual inventors, at the behest of the largest corporations. As the rich get richer and the rest fall by the wayside, this country's prospects for the future also fall."
http://www.patenthawk.com/blog/2011/10/rife_with_corruption.html
A prime candidate for another Obama/Geitner/Bernanke bailout GIFT of $100B of taxpayers' money.
When these 3 fools are kicked out of office, they should go directly to jail, don't pass go and don't collect $200!!
somewhere but otherwise mainly facade (--and you wondered where his zeal was)) is buying
New Deal jobs programs with money borrowed from the banks that are holding
free reserves at the expense of your savings' earning power.)
The banks really should suffer their own losses, especially since they forced much
dislocation on everyone else. Then, we can find our way back to a normal,
honest economy.
Every week it's one idea after another aimed at preserving heads I win, tails you
(that's you) lose.
http://www.thereformedbroker.com/2011/10/09/this-is-why-they-hate-you-and-want-you-to-die
This is a GREAT READ
Green - n + d = ?
http://www.cnbc.com/id/44891633