BofA to pay millions in severance

11 October 2011

Bank of America (BofA) is to pay an outgoing executive $6 million as severance, a regulatory filing has revealed.

Sallie Krawcheck, former head of wealth management division at BofA, is to receive a sum which includes one year’s salary worth $850,000 and a one-time payment of $5.15 million.

Joe Price, former president of Global Consumer and Small Business at the financial institution, is to receive a severance package worth $5 million - equivalent to a year’s salary of $850,000 and $4.15 million as a lump sum.

As part of the agreement, the filing said that the pair “each agreed to a general release of claims against the Registrant [BofA] and its subsidiaries and affiliates, and to one-year covenants not to compete with the Registrant and not to solicit employees or customers of the Registrant”.

The departures of both Ms Krawcheck and Mr Price were announced as part of a restructure unveiled by BofA chief executive officer Brian Moynihan in September.

BofA recently announced plans to cut 30,000 jobs over the next few years as part of a cost-reduction programme.

By Jim Ottewill

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