Ken Lewis, the outgoing CEO of Bank of America, won't be collecting a salary or bonus for 2009, according to the Wall Street Journal. Why? Because the Treasury Department's pay czar, Ken Feinberg, demanded it and the bank conceded rather than put up a fight. Don't shed any tears for Lewis: His retirement package is still worth between $69.3 million and $120 million. But there's reason to believe Citigroup chief executive Vikram Pandit is quaking in his Ferragamo loafers this evening:
The move will stun Wall Street, which has been anxiously awaiting Mr. Feinberg's rulings on compensation at seven firms receiving large sums of government aid, including also Citigroup Inc. and General Motors. Mr. Feinberg had been expected to clamp down on compensation by cutting salaries for the most highly-paid employees at these firms. But until now there's been little indication he would take away an employee's entire pay.