Human Capital & Careers

B of A CFO’s Comp Fell Short of Target

The 2007 total pay of Joe Price was $5.63m, but the $3.2m cash-and-stock portion contrasted with $7.2m in the bank's plan.
Roy Harris and Stephen TaubMarch 20, 2008

The chief financial officer of Bank of America made more than $5.63 million last year. But he’s not likely all that happy about it.

According to the financial giant’s latest proxy, Joe L. Price received an $800,000 salary and $1.6 million in cash incentive and $1.6 million in restricted stock, for a total before stock options of $3.2 million. However, this was much less than the $7.2 million target for salary, incentive, and stock.

Price also received nearly $1.6 million in options awards. The company explained that Price’s non-equity $1.6-million cash incentive included amounts deferred under its qualified and nonqualified 401(k) plans.

At the top of the management chart, chairman, president, and CEO Kenneth D. Lewis earned a total of $16.43 million, including $1.5 million salary and $4.23 million in stock awards, $2.97 million in option awards, and $4.25 million in non-equity incentive-plan comp. That was sharply lower than the $25.65 million total compensation he received for 2006.

Price became CFO just over a year ago, after the resignation of Alvaro G. de Molina, who moved to private equity concern Cerberus Capital Management. Price formerly had been the bank’s risk management executive for Global Corporate and Investment Banking.

Keep in mind that Bank of America is one among dozens of companies that will face a shareholder vote at its upcoming annual meeting on whether to adopt a “say on pay” policy. The bank opposes the non-binding measure.