Bank of America Corp would be paying $11 million to ousted executives Joe Price and Sallie Krawcheck, a large payout at a time when banks face protests over pay but smaller than the eight-figure packages that were received by some executives before the financial crisis.
According to separation agreements filed by the bank, Krawcheck will receive a one-time payment of $5.15 million and Price will get $4.15 million.
Bank of America expects to cut 30,000 jobs as part of its efficiency program, which is designed to reduce costs as the mortgage crisis, new regulations, and low loan demand crimp revenue.
While a large amount, the payouts to Price and Krawcheck were in line with severance packages for executives of their stature and pay grade, said a compensation consultant.
Some executives ousted in the financial crisis drew ire for taking home huge severance pay. Protesters on Wall Street are currently demonstrating against outsized compensation for bankers.
In return for the payments, Krawcheck and Price agreed not to compete against the company in their respective areas or lure away clients or employees for a year. They also agreed not to make negative public comments about the bank.
Both Krawcheck and Price will also receive $850,000 over a one-year period.
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