Bank of America Corp (BAC.N) will pay $11 million to ousted executives Joe Price and Sallie Krawcheck, a large payout at a time when banks face protests over pay but smaller than the eight-figure packages some executives received before the financial crisis.
Krawcheck -- a former Citigroup Inc (C.N) executive who came to Bank of America in 2009 and was one of the top-ranking women on Wall Street -- will receive a one-time payment of $5.15 million, according to separation agreements filed by the bank on Friday.
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 officers.
Bank of America expects to cut 30,000 jobs as part of its efficiency program, which is designed to reduce costs as the mortgage crisis, new regulations, and low loan demand crimp revenue.
While a large amount, the payouts to Price and Krawcheck were in line with severance packages for executives of their stature and pay grade, said a compensation consultant.
Some executives ousted in the financial crisis drew ire for taking home huge severance pay. Protesters on Wall Street are currently demonstrating against outsized compensation for bankers.
In return for the payments, Krawcheck and Price agreed not to compete against the company in their respective areas or lure away clients or employees for a year. They also agreed not to make negative public comments about the bank.
Bank of America agreed to provide prospective employers with "neutral" references and employment verification, according to the filing. The document provided a toll-free number for employers to call.
It's not unusual for companies to say they will provide departing employees with neutral references but "highly unusual" to say it in a public document, the compensation consultant said.
(Reporting by Rick Rothacker in Charlotte; Editing by Gary Hill, Bernard Orr)