Published October 07, 2011
Bank of America Corp said it will pay $11 million total to ousted executives Joe Price and Sallie Krawcheck, according to separation agreements filed by the bank Friday.
Krawcheck, a former Citigroup Inc executive who came to Bank of America in 2009, will receive a one-time payment of $5.15 million, while Price, a Bank of America veteran, gets $4.15 million. Each will also receive $850,000 over a one-year period.
Price was head of consumer banking and Krawcheck led wealth and investment operations.
The Charlotte, North Carolina, bank last month eliminated their positions as part of a cost cutting initiative called Project New BAC. Chief Executive Brian Moynihan assigned their duties to two executives promoted to co-chief operating officer.
The bank expects to cut 30,000 jobs as part of that program, which is designed to reduce costs as the mortgage crisis, new regulations, and low loan demand crimp revenue. (Reporting by Rick Rothacker in Charlotte; Editing by Gary Hill, Bernard Orr)