Krawcheck Gets $6 Million After BofA Ouster

[xchrom]

http://www.bloomberg.com/news/2011-10-07/bank-of-america-gives-krawcheck-6-million-severance-package-after-ouster.html

Bank of America Corp. (BAC), the lender seeking to trim expenses by eliminating at least 30,000 jobs, will pay former wealth-management division head Sallie L. Krawcheck $6 million after her dismissal last month.

That sum includes one year of her former salary, or $850,000, and a one-time payment of $5.15 million to be awarded in 2012, the Charlotte, North Carolina-based bank said yesterday in a filing. Joseph Price, whose position was also eliminated, gets a $5 million package, the bank said.

Chief Executive Officer Brian T. Moynihan ousted Krawcheck and Price in September as part of his effort to streamline the biggest U.S. bank amid mortgage-related losses and a 56 percent share decline this year. His target is to reduce annual costs at consumer banking units by $5 billion, mostly through job cuts.

“This is yet another story about a corporate executive getting significant amounts of money after they’ve left their employer,” said Richard Lipstein, a managing director for headhunter Boyden Global Executive Search. “She was part of a restructuring that eliminated a layer of management; at her level, there are certain obligations that have to be fulfilled if you leave for non-cause.”

[rfranklin]

1. Of course there was "cause"

'Cause we don't like you. If the CEO liked her there would be a position found for her.

[xchrom]

2. ...

:spray:

[Tesha]

3. One thing we could do to help American corporations would be to return to the practice of "firing"..

...the CEO.

"Bob, I'm sorry to have to do this, but 'face it Flounder,
you fucked up!' You cost us $645 Billion dollars in lost
stock value and $27 Billion in cash and the Board and I
just won't stand for that.

So I want you to pack up your desk and be out of here
by noon. And don't bother asking me for a referral for
your next job."

-=-=-=-=-=-

No golden parachute.

No severance pay.

Just "The security guards will show you out..."

Tesha

[trumad]

4. LOL---Please

Bob will have 10 jobs lines up for his choosing.

Failing upward is the norm.

[Tesha]

5. But it needn't be.

Part of the problem is interlocking membership on
corporate boards and the good old-boy (and more
and more, good old-gal) system that that fosters.

If large institutional investors would stop voting
to approve these interlocking boards, executive
accountability might return to popularity.

Tesha

[trumad]

7. I agree...

hence the OWS movement.

[JHB]

6. Position eliminated: 1 year salary + 6 years-worth as lump sum

You think if we made a formula like that standard there'd be less outsourcing?