Ken Lewis is on track to collect big on a pension plan
the bank froze years ago in a push to link pay and performance.
By Colin Barr, senior writer
Last Updated: October 1, 2009: 9:14 PM ET
NEW YORK (Fortune) — Ken Lewis doesn’t have a golden parachute, but he’s all set for a comfortable landing — unlike his long-suffering shareholders.
The Bank of America (BAC, Fortune 500) chief executive officer said Wednesday he’ll step aside at year-end after eight years at the helm. Based on the company’s most recent proxy statement, he will have $53 million in pension benefits waiting for him when he leaves.
That should give him about $3.5 million a year in pension payouts for the rest of his life — at a time when people who bought the stock when he took the reins in 2001 are underwater on their investments.
Although the bank swore off employment contracts and eliminated golden parachutes seven years ago, Lewis can thank a pension plan that dates back decades for his rich retirement rewards.
