With government appointed compensation czar Ken Feinberg in the rear view mirror, paychecks at Bank of America (NYSE: BAC) appear to be on the rise. According to a securities filing, executive Tom Montag received $7 million in BofA stock this week as shares awarded him in 2009 vested.
Montag, president of global banking and markets and the most senior Merrill Lynch survivor, received 297,815 shares on Jan. 1 priced at $13.30 each. On Jan. 2, he received 465,255 shares at $13.34 each. He also forfeited 377,926 shares for tax purposes. Altogether, he netted 385,114 shares worth about $7 million. In fact, Montag is the highest-paid employee at the bank. He was paid $586,000 in annual salary and in 2009 was awarded about $29 million in restricted stock options. This week’s award is the first portion of that stock payout to vest.
As investors continue to clamor for returns, and district attorneys are readying lawsuits over foreclosure processes, it does not seem to be the right time to start increasing compensation for execs. Although the Merrill division must stem the tide of knowledge loss, overpaying to do so will come back to bite the firm in the end.
