Ken Lewis' Sweet Retirement Deal
Pic credit: LOLFed
Ken Lewis doesn't have a golden parachute, but he's all set for a comfortable landing -- unlike his long-suffering shareholders.
The Bank of America (BAC, Fortune 500) chief executive officer said Wednesday he'll step aside at year-end after eight years at the helm. Based on the company's most recent proxy statement, he will have $53 million in pension benefits waiting for him when he leaves.
That should give him about $3.5 million a year in pension payouts for the rest of his life -- at a time when people who bought the stock when he took the reins in 2001 are underwater on their investments.
Although the bank swore off employment contracts and eliminated golden parachutes seven years ago, Lewis can thank a pension plan that dates back decades for his rich retirement rewards.
While this plan was open, certain top executives were eligible to accrue benefits they would receive following retirement in the form of annuity payments.
Lewis was the biggest winner in these plans, but other BofA execs benefited as well. Vice Chairman James Hance, for instance, retired in 2005 with an indicated annual benefit of $2.7 million.
Wonder how much our boy Kenny will make from that tell-all he's going to write that paints Zimbabwe Ben as the criminal that he really is?