Investment Group Urges BofA to End Home Loss Payouts for Top Execs

February 3, 2011 No Comments »

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CtW Investment Group has called on Bank of America to end the “discredited practice” of providing assistance to senior executives who face potential losses when selling their homes.

It’s one of the many frills execs enjoy, along with company Blackberrys, laptops, and gym memberships.

But CtW claims it only insulates a small group of executives “from the economics facts of life,” while the company’s own customers struggle to make mortgage payments.

The group filed a shareholder proposal for the April 2011 annual meeting in response to a home loss subsidy offered to the President of the company’s Home Mortgage division, which was in addition to a $3.6 million relocation and tax gross-up package.

But Bank of America has sought approval from the SEC to prevent a shareholder vote on the subsidies, calling them “ordinary business.”

“For the Board to allow management to proceed with its attempt to prevent a vote on the practice would not only disenfranchise shareholders, it would demonstrate a dangerous insensitivity to our Company’s customers,” said William Patterson, Executive Director of the CtW Investment Group, in a release.

Bank of America has come under fire for its foreclosure practices, and has also faced a number of lawsuits tied to former mortgage lender Countrywide, which it acquired back in 2008.

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