Tuesday, January 6, 2009

Finally, decency on lavish bonuses

We're tired of reading about lavish bonuses for financial executives whose companies have had miserable years.
So are most people watching their home values and 401K retirement accounts race to see which can tumble the most in value the fastest.

That's why what Bank of America chief executive Ken Lewis has done strikes a chord of common sense and common decency.

Lewis has recommended to his board of directors that he and his top lieutenants receive no bonuses for their 2008 performance. Lewis expects the board to agree with his recommendation, and we hope it does.

At a time when bailing out banks has become the nation's spending priority, it's nice to see an executive acknowledge the times and that sacrifice with some restraint. (Some executives just had a billion-dollar party, remember?)
It's a tip of the hat, too, to the fact shareholders have seen the value of stock decrease by two-thirds. (Stock has fallen 66 percent and BofA has cut its dividend by 50 percent.)

- posted by Mary Schulken


Anonymous said...

Yip...who needs a bonus when you have a salary worth 500k a year and made 26 million in bonuses last year...I don't think he will be hurting too much!

Anonymous said...

As others have said, this is more posturing than anything else. The Federal Gov't, now a significant owner of BOA, has forbidden bonuses to Execs. So he wouldn't have been able to get one anyway. Don't let this guys fool you, this is sleezy PR and that's all.