Former Bank of America CEO Ken Lewis received a compensation package valued at $32,171 in 2009 as the bank struggled with loan losses and repaid billions in federal bailout money, according to an Associated Press analysis of a regulatory filing disclosed Friday.
That modest sum is more than offset by Lewis' accumulated compensation and retirement benefits, which totals $73 million, according to a preliminary filing disclosed to the Securities and Exchange Commission. In addition, Lewis' beneficiary will receive a $10.3 million life insurance payment upon the death of Lewis and his wife.
Lewis, who stepped down as CEO on Dec. 31, received no salary or bonus last year. His compensation was limited to perks including tax services, home security and parking, according to the filing.
Lewis' 2008 compensation was valued at $9 million. He resigned after almost a year of strife that followed the bank's purchase of Merrill Lynch. He was succeeded as CEO by Brian Moynihan, formerly head of the bank's consumer banking division.
Moynihan's 2009 compensation, including salary and stock awards, was valued at $6.03 million, up 32 percent over 2008, according to the filing.
Both Lewis' and Moynihan's pay was dwarfed by the bank's head of global banking and markets, Tom Montag, whose 2009 pay was valued at $29.9 million. The bulk of Montag's pay was in restricted stock. Bank of America said Montag's stock award was a "contractual commitment" made by Merrill Lynch, which hired Montag in April 2008 before the company being acquired by Bank of America.
Bank of America received $25 billion in government bailout money at the height of the credit crisis in fall 2008. It received an additional $20 billion in January 2009 to help offset losses it absorbed as part of the Merrill Lynch acquisition. The bank repaid the money in December, but rancor over the Merrill deal continued.
Earlier this month, New York Attorney General Andrew Cuomo filed civil charges against Bank of America and Lewis, saying the bank misled investors about Merrill Lynch before it acquired the Wall Street bank in early 2009.
Civil charges were also filed against Joe Price, who was chief financial officer at the time of the deal and is now head of BofA's consumer banking division. Price's 2009 compensation package was valued at $6.03 million, according to the filing.
The charges grew out of from accusations that Bank of America failed to properly disclose losses at Merrill and bonuses paid to investment bank employees before the deal closed. The bank has denied the accusations.
Bank of America was eager to repay its bailout money to avoid compensation restrictions imposed by the government pay czar Kenneth Feinberg.
The AP's executive pay calculation aims to isolate the value the company's board placed on the CEO's total compensation package. The figure includes salary, bonus, incentives, perks and the estimated value of stock options and awards.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.