You Don’t Get No Stinkin’ Bonus!

January 7, 2009

By Angie Moreschi:

On this rare occasion we take the opportunity to offer kudos to a bank executive for suggesting he should NOT get a bonus for 2008. Bank of America CEO Ken Lewis took the uncommon stand of suggesting he and his company’s senior executives should forgo their bonus in these dismal economic times.  Mind you, Bank of America has experienced five straight quarters of declining profits, so you might think no bonus is a given.  But, of course, the entire financial world has been turned on its ear, so there’s no such thing as logic. So for that reason, we applaud Ken Lewis for doing his part to put an ounce of sanity back into the process. By the way, Lewis did receive $24.8 million in total compensation last year, so don’t feel too badly for him.

It’s also important to point out that Bank of America accepted $15 billion from the government’s TARP rescue plan.  House Financial Services Committee Chairman Barney Frank (D-Mass.) has expressed his belief that “no bonus” should be a requirement of accepting government bail-out money.  Now that makes sense.