BoA pays $28m for Countrywide COO

28 March 2008

Bank of America (BoA) has agreed to reward Countrywide chief operating officer (COO) David Sambol $28 million as incentive for him to stay on following the company’s merger, reports Reuters.

This move follows the $4.1 billion purchase of Countrywide by BoA, which will create the biggest mortgage lender in the US.

Mr Sambol will receive a $20 million retention bonus to be paid in equal portions on the first and second anniversaries of the merger, BoA disclosed on Thursday upon filing with the US securities and exchange commission.

In addition to this, Mr Sambol will be awarded $8 million in stock vested over three years, along with a $500,000 base salary and performance bonuses.

The amount eclipses the $20 million paid by BoA, the second largest US bank, to chairman and chief executive Kenneth Lewis in 2007.

After the merger, Mr Sambol will oversee a group enabling almost one in four US home loans.

The Federal Reserve will hold public hearings during April in regards to the merger, although analysts do not expect this to derail the deal.

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