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Ousted BofA Execs Finalize Parting Gifts

October 10, 2011
After being ousted from BofA, former execs Sallie Krawcheck and Joe Price will receive $6mn and $5mn, respectively, under newly signed agreements smoothing their departures from the bank. In the documents, filed with the SEC,  both executives are promised “installment payments” equivalent to their annual base salaries — $850,000 apiece, paid out over the next year — as well as a “one-time supplemental lump sum payment” of $5.15mn for Krawcheck and $4.15mn for Price. By contrast, Krawcheck received total compensation of $6.2mn last year and $1.9mn in 2009, according to the bank’s regulatory filings. Price received $917,027 last year and $6.1mn the year before. In their final agreements with the bank, both executives agreed not to take jobs with competing companies or recruit Bank of America employees for a year. They also promised not to badmouth their former employer. Violating the agreement could let the bank cut off their installment payments. The two agreements have a few curious differences. A sentence in Price’s reserves his “ability to bring an action to enforce the terms of this agreement”; no equivalent language appears in Krawcheck’s agreement. Krawcheck’s agreement, meantime, twice explicitly reserves her right to indemnification, while Price’s raises the issue just once. The two agreements are mum on the subject of cashing out equity awards to the two executives. Stock options and restricted stock often make up the biggest rewards for executives shown the door, and previous Bank of America filings suggested Krawcheck could receive as much as $4.6mn from cashing in stock she held as of the end of December. [Dealbook, 10/7/11]