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