Bank of America Mortgage Boss Takes Pay Cut

November 30, 2009 No Comments »

dollar bills

Bank of America mortgage president Barbara Desoer saw her salary cut to just $500,000 from $800,000 after a review from U.S. Treasury pay czar Kenneth Feinberg.

The Charlotte-based bank and mortgage lender revealed the move in a SEC filing; CFO Joe Price saw his salary slashed similarly.

Of course, the pair will still receive millions in stock-based compensation for 2009, with Price expected to reap $5.25 million and Desoer $3.95 million as soon as the bank and mortgage lender repays the more than $45 billion it received via TARP last year.

Bank of America also agreed to limit executive perks that Feinberg had previously called for, limiting top executives’ benefits to no more than $25,000 per year.

Anything over that amount will be quickly repaid to avoid any backlash from critics, the media, and the general pubic.

Last year, Desoer received more than $2.6 million in “extra benefits,” including $1.5 million in relocation expenses to fund her move from Charlotte, North Carolina to luxurious Calabasas, California.

That included the purchase of a new residence, including a mortgage subsidy and funds to cover closing costs.

Desoer, the former Chief Technology and Operations Officer for Bank of America, has been in charge of transferring Countrywide’s extensive mortgage business post-merger.

Price played a key role in the bank’s controversial purchase of Merrill Lynch last year.

Leave A Response