While a lot of people of hurting it will be nice to see that the lenders who cause this mess are not going to be getting away completely free. As the government’s pay Czar reviews the compensation that is received by the management in the companies that received TARP and other funds from the government it seems old Ken Lewis, who recently revealed his retirement plans for the end of the year, will not be earning any money this year. In fact he will actually paying back the $1ML he has already been paid. This came off the back of the Czar’s “suggestion”. Seems about time that somebody paid something, Right!?
The outgoing leader will have to repay what he’s earned so far this year, based on a deal struck by the government’s pay czar.
NEW YORK (CNNMoney.com) — In the past, Bank of America Chief Executive Officer Ken Lewis has received an annual salary of $1.5 million. But this year he will get nothing.
That means no salary, no bonuses. In fact, he will have to repay Bank of America Corp. (BAC, Fortune 500) the more than $1 million he has already earned in his final year on the job.
Lewis agreed to the deal on Thursday after the Treasury department’s pay czar, Kenneth Feinberg, “suggested” it to him, said Bob Stickler, a spokesman for the bank.
Stickler added that Lewis “felt it was not in the best interest of Bank of America or him to get into a dispute with the pay master.”
Lewis, who announced last month that he will retire at the year’s end, will still have $53 million in pension benefits waiting for him. The outgoing chief will also have other stock awards and deferred compensation for a total $69 million payout, said Stickler.
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Jonathan Katz started in the Loss Mitigation industry in early 2000's. He worked for the one of the largest loan servicers in the US in their loss mitigation/foreclosure department. Through a work flow of 600 cases a month and several years of experience he created an organization in 2005 dedicated to helping homeowners. Now he is taking the next step and putting out the information that even professionals will benefit from.
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