In a capitalist society, Milton Friedman and most other economists would tell you, the best way to get rich is to create a lot of value for other people.But failing that, you can also get really rich destroying value for other people as well. Fortune's Colin Barr reports that Mr. Lewis will exit to $53 million in pension benefits -- which equates to about $3.5 million per year for the rest of his life. People who bought shares in Bank of America (NYSE: BAC) when Lewis took over in 2001are still badly in the red on their stake in the company.
In other words: Ken Lewis collected a huge salary and huge bonus for nearly a decade while he didn't make any money for the people who employ him. Now he's retiring and he'll continue to collect millions each year while whoever has the unenviable task of succeeding him tries to clean up his mess.
The worst part is that Bank of America still has not paid back all of the money that it borrowed from the United States government meaning that Ken Lewis is now almost literally a welfare recipient to the tune of $3.5 million per year.
Here's an idea: Ken Lewis should call a press conference and announce that he won't collect a dime of his pension money until Bank of America has paid back all of its TARP loans.
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Reader Comments (Page 1 of 1)
10-02-2009 @ 3:12PM
Robert Edwards said...
What bothers me is the 2,000,000 dollars he bought BAC at back in February, that is now worth $$,$$$,$$$,$$$. There are people on the insider list who get stock awards and gifts. Shareholders from last year didn't get any gifts but aggravation. Clearly, many people who are insiders benefit from knowledge we don't have. Ken Lewis knew back in February BAC was going to be ok. I guess another thing that bothers me about the current stocks condition is the fact no insiders are buying BAC now.
10-06-2009 @ 7:39PM
smartfix said...
In a thriller that I am writing, Charles Manson's secret family operatives execute and butcher Ken Lewis' family.
They take all his money and give it to charity. A cure for cancer is found.
Then, in a public ceremony the Manson family is awarded the Freedom Medal.
I wake up from the dream or I think I do and Ken Lewis' wife is licking my balls and my huge black shaft is in Ken's mouth.
I have not written the ending yet, any suggestions?
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