Sallie Krawcheck was hired by Ken Lewis at BofA in August of 2009 after a career at Citigroup where she was CFO when fired by Vikram Pandit in 2008, with no severance.
After just 24 months at Bank of America she was fired last month by Brian Moynihan, and it was announced yesterday that she is set to receive $6 million in severance.
Keep this in mind when BofA supplicates before Geithner for its next taxpayer bailout.
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Bank of America, 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.”