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Bank of America Pays Out $700 Million in Bonuses With YOUR Money

Posted on | February 15, 2009 | 6 Comments

On February 13th, 2009, Bank of America started its year end compensation bonus package.  In one day, the struggling bank paid out $700 million and is expected to pay an additional $900 million in cash and stocks in the near future.  Where is this money coming from?  Is this the same company that is going to receive over $20 billion in government aid?  How can you possibly continue to pay bonuses when you asked THE AMERICAN PUBLIC to bail you out?!?

The irony of it all is that two days after paying out $700 million, Ken Lewis and his team decided to accept a tender offer.  The best part about this offer is that shareholders received a letter that the Bank of America stock is part of a mandatory reorganization or tender offer with no explanation.  Could you please elaborate Mr. Lewis?  Wait, what am I thinking?  You are the same “leader” that allowed John Thain, former Merrill Lynch CEO, to pay out $4 billion in bonuses a week prior to closing a deal to be purchased by Bank of America.  I guess you are just following in his footsteps?  You are ONLY at $1.7 billion Mr. Lewis, I am sure you can use our tax dollars to continue to pay out bonuses that were not earned.  Just in case you didn’t look at your operating statement, here are the facts:

YOUR company went from making $31.9 billion in 2006 to making $4.4 billion in 2008, great growth achieved Mr. Lewis!  Yes, that is correct, your buddy John Thain spent ALL of your earnings for his employees bonuses.  So this question is, where is the money coming from for the bonuses of YOUR employees.  My calculations show that you have $400,000 left, NOT $1.7 billion!

Related Posts:

Will the Last Honest Bank Please Stand Up?

Bank(rupt) of America: Will Bank of America File Bankruptcy?

Who Pays $87,784 For An Area Rug?!?  Merrill Lynch CEO John Thain

Category: Investing
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Comments

6 Responses to “Bank of America Pays Out $700 Million in Bonuses With YOUR Money”

  1. Bank of America Pays Out $700 Million in Bonuses With YOUR Money | No Brainer Profits
    February 16th, 2009 @ 2:54 am

    [...] Read the original: Bank of America Pays Out $700 Million in Bonuses With YOUR Money [...]

  2. Marty
    February 16th, 2009 @ 4:41 pm

    bonues are part of employee comepnsation. Earnings are what’s left over after paying all expenses (including compensation) and tax. Hence $4.4bn is what’s left over after paying compensation

  3. louis jeffries
    February 16th, 2009 @ 5:18 pm

    This is an interesting article. But there is missing information before I can determine how I feel about it. I banking all branches are given performance incentives. Branch managers assistants and many other employees are paid low salaries and incentives for their work. This is standard in banking and other industries. So when an articles says employee bonuses It could be a regular part of the employee pay. If this would be executive bonuses then that would be a different story. This article does not say one way or the other. This leaves it up to reader discretion which is heavily influence by media hype which is all bonuses are bad. Of course if your pay was performance based and you earned it based on your performance you would expect your performance based bonus, right?

  4. Brad
    March 19th, 2009 @ 1:24 pm

    Bank of America is one of the few banks that did not need a bailout and even said they did not want it.. They were forced to take it as they were told it was their “patriotic duty”

    The bonuses are quite large but BOA would have been more than capable to pay them if they did not receive a bailout.

    Its about time you people looked at the real problem which is your federal reserve and the puppet masters who plan on bankrupting the world financial system and create a new world order.

  5. Pavel Zaitsev
    March 20th, 2009 @ 6:15 am

    Sounds like you’ve been scumbagged out of your money. :)

  6. The Financial Suite » Ken Lewis Pumps Up Bank of America Stock then Steps Down?
    April 15th, 2009 @ 12:31 am

    [...] Bank of America Pays Out $700 Million in Bonuses With YOUR Money [...]

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