Highly Ambitious Bankers Should Steer Clear of BofA

It's completely ridiculous that the new American "pay czar" has been able to deny former Bank of America (BAC) chief Ken Lewis part of his pay package.

The Treasury Department's pay czar pushed outgoing Bank of America Corp. Chief Executive Kenneth D. Lewis into giving back about $1 million he received so far this year and forgoing the rest of his $1.5 million salary for 2009, say people familiar with the matter.

The move makes Mr. Lewis the biggest target so far of Kenneth Feinberg, the Treasury's "special master" for compensation. He also asked that Mr. Lewis pass up any 2009 bonus from the Charlotte, N.C., bank.

Mr. Lewis is still walking away with a lot of money, almost $70m I believe, which shows that this Czar action was merely symbolic. Kenneth Feinberg (the Czar) is now investigating almost 200 highly paid employees who unfortunately happen to fall under his authoritarian control. This sends a horrible message. Essentially, it says that if you are highly ambitious in your career, don't join any bank associated with the U.S. government. Join another bank that will pay you as much as you can command.

When people freak out over high salaries for bankers, CEOs, etc. they forget one very important reason why these people need to make a lot of money- they always have the choice of A) retiring (they're likely already wealthy) and not having to put up with the stress and BS high powered positions carry or B) starting their own company and earning substantial amounts of money as an owner. CEOs can walk away and build companies while bankers can walk away and create financial boutiques. They thus need to be paid enough so that they are convinced to remain in demanding jobs rather than follow their dreams and spend their time with family. The way things are going now in the U.S., many highly capable people might just call it quits and live the good life. Think about Mr. Lewis's 2009: he had his reputation destroyed, became hated by the masses, and now didn't even get paid for the year. For anyone at the top of their game, being the next leader of Bank of America looks like a giant trap best avoided.

Comments

[HBWOW:]

Are you serious? Lewis is a major player in bringing about the economic meltdown in fall of 2008. Bonuses and compensation
MUST be tied to performance and profits. He is leaving with $70 million (you state) when he should be under in depth investigation for his part in the derivative and ML debacle. Most corporate insiders have long ignored the stockholders for their own greed and power. Unfortunately, the government, regulators, examiners, SEC, and mainly the crony directors have all been part of the problem.by looking the other way.

Oct 16 10:05 AM

[alexander j...:]

Very serious

Oct 16 10:48 AM

[mngordo:]

OK, I read your piece. I see what you are saying. So now I am trying VERY HARD to really feel bad for Mr. Lewis. ---- Pause ----
OK, I am still trying. Seventy million you say??? And how much is he worth already????
Still trying to feel something but I just can't seem to squeak out a single tear. I must be a rotten, unsympathetic person.
What's wrong with me?
I seem to have no trouble getting upset for the unemployed, the poor, the sick, the weak, the ignorant, but can't conjure up any sympathy for "poor" Mr. Lewis. Why I'll bet he must go to sleep each night wondering if the government can provide him with a public option in health care when he gets ill.
Oops, I almost felt something but then I realized if he needs health care he can simply buy a hospital.

Oct 16 10:52 AM

[A little co...:]

You gotta be shi___g me. People like Ken walk by lower level employees that are not even making a living wage. I came out of the utility industry and they are also loaded with greed!

Oct 19 07:52 PM