Bank CEO’s Pay to Be Based on Performance
From Associated Press
The chief executive of Bank of America has dropped his employment contract because he wanted his pay to be based on performance, the bank said in a regulatory filing.
The company’s board agreed to terminate the contract at the request of Ken Lewis, who is also chairman, spokeswoman Eloise Hale said. The board’s compensation committee will determine Lewis’ pay based on customer, employee and shareholder satisfaction, she said.
In 2002, Lewis made a base salary of $1.5 million and a bonus of $5.38 million. The company also awarded him restricted stock valued at $11.34 million at the time. In 2003, he made about $17.5 million by exercising stock options. The company will release 2003 salary information in its proxy filing later this year.
