Kenneth Lewis, the outgoing Bank of America chief executive officer, will not be paid for his work in 2009 following a request from US pay czar Kenneth Feinberg.
Mr Lewis will not receive his $1.5 million salary or any bonuses for this year, but question marks remain on what will happen to his retirement payout, which is rumoured to stand at around $125 million.
Speaking about Mr Lewis's decision to forego this year's salary, Bank of America spokesman Robert Stickler said: "Lewis felt that it was not in the best interest of Bank of America to get involved in a dispute with the pay master."
The request by Mr Feinberg comes ahead of his announcement at the end of the month on pay plans for executives at bailed-out firms.
AIG and Citigroup, along with Bank of America and others, will have to reveal to him how much they plan to pay their top 100 earners.
Earlier this month, the Services Employees International Union sent an open letter to Mr Feinberg asking him to ensure Mr Lewis, who it credited as one of the chief architects of the financial crisis, did not receive a pension.
By Asim Shah
Profile Software, the international financial solutions provider, announced today the operational use of the omni-channel digital banking platform int...View article
A leading global investment bank and GBST client for more than 20 years, has upgraded to the latest version of Composer and completed a seamless 4-mon...View article
In an exclusive conversation with People Matters, the CEO of Maveric Systems talks about how the company’s business and people management priori...View article