Pay czar cuts pay of two top BofA executives

/ Source: The Associated Press

Bailed-out Bank of America amended the salaries of two senior executives after a review by the White House pay czar, according to a regulatory filing.

Chief Financial Officer Joe. L. Price and mortgage unit President Barbara J. Desoer will earn less salary in 2009 than they did last year following approval by the officer of the special master for TARP Executive Compensation, Bank of America said in papers filing with the Securities and Exchange Commission.

The Charlotte, N.C.-based bank remains under scrutiny after receiving $45 billion in bailout funds as part of the Treasury Department's $700 billion financial rescue package. Unlike some rivals, it has not said when it will pay back the government the money from the Troubled Asset Relief Program, or TARP.

In the filing submitted late Friday, Bank of America said it amended the 2009 compensation agreements for Price and Desoer.

Price's salary was trimmed to $500,000, retroactive to Nov. 1. He earned a salary of $800,000 for 2008, according to a separate filing submitted in March.

The CFO will also receive stock unit awards valued at $5.3 million for the full year 2009. According to the March filing, he received stock awards worth $2.3 million and options awards valued at $1.5 million for 2008.

Desoer, president of Bank of America mortgage, home equity and insurance services, will also see her annual salary trimmed to $500,000 from the $800,000 reported for last year. She will receive 2009 stock unit awards of $3.95 million. She received $2.3 million in stock awards and $1.53 million in options awards for 2008.

Both executives are also limited to $25,000 in other compensation, which often includes items like tax preparation, payment of insurance premiums, use of corporate aircraft, matching charitable contributions and other perks. In 2008, Price received $41,000 in perks. Desoer received $2.66 million in perks, including $1.5 million in relocation benefits when she moved from Charlotte to Calabasas, Calif., to take over the home lending and insurance business.

If either has already received more than $25,000 in perks this year, they must repay the difference, the filing said.