Bank of America Corp., the biggest U.S. bank by assets, said chief financial officer Joe Price and mortgage head Barbara Desoer will receive less in salary this year, citing a review by U.S. paymaster Kenneth Feinberg.
Price and Desoer had their annual salaries set at $500,000, the Charlotte, N.C.-based lender said Friday in a regulatory filing. The two executives also get “stock-unit awards” in lieu of cash, valued at $5.25 million for Price and $3.95 million for Desoer, the filing said. The adjustments in 2009 base salary were retroactive to Nov. 1, the filing said.
The bank’s March 18 proxy statement said their 2008 salaries were $800,000. They also received stock and option awards, with total 2008 compensation for Price of $4.02 million and $7.42 million for Desoer.
Responding to outrage stoked by bonuses at failing companies, the U.S. Treasury Department named Feinberg in June to evaluate compensation at seven bailed-out firms. The 64-year-old Washington lawyer already has persuaded Bank of America chief executive Kenneth Lewis to give up his salary and bonus for 2009. Lewis plans to retire Dec. 31.
The revised terms for Price and Desoer include restrictions on perquisites that would require them to return any 2009 amounts exceeding $25,000. Tax “gross-ups” tied to certain elements of their compensation are eliminated, the filing said. Gross-ups typically are payments to cover the cost of income taxes so that an executive receives the full value of benefits and perks.
