BofA CEO to Receive No 2009 Salary

Bank of America’s outgoing chief executive Ken Lewis, whose resignation from the post came as a complete surprise to Bank of America’s board of directors, will essentially earn no money for his work in 2009 due to the mandate of Kenneth R. Feinberg, the Obama administration’s special master on compensation. Lewis will instead return about $1 million to the bank.

Feinberg, who has the authority to set executive compensation levels of seven major corporations that received federal bailout money, suggested that Lewis should receive no wages or special compensation for 2009. Lewis agreed with Feinberg’s suggestions and stated that he does not believe that it is in the bank’s best interest to disagree with the Obama administration’s pay master.

Lewis would have otherwise earned a base salary of $1.5 million in the year of 2009, but will instead be writing a check for around $1 million to return the wages that he has already earned throughout the year to the bank. The reaction throughout much of Wall Street and from many analysts following the situation is shock, as much of the business community can hardly imagine the government asking a company executive to return his pay.

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