Ken Lewis (executive)
Encyclopedia
Kenneth D. "Ken" Lewis is the former CEO, President, and Chairman of Bank of America
, the largest bank
in the United States
and second largest in the world. On September 30th, 2009 Bank of America confirmed that Ken Lewis would be retiring by the end of the year. He was replaced by Brian Moynihan
as President and CEO and Walter Massey as Chairman of the Board.
. He is a graduate of Georgia State University
, where he earned a bachelor of arts degree in finance
from J. Mack Robinson College of Business
.
He joined NCNB as a credit analyst in 1969, and served as the head of both international and domestic operations when it became NationsBank
, which would eventually become Bank of America.
in 2001.
for $50 billion.
integrations are on track and returning value already. Our board of directors and our senior management include more talent, and more diversity of talent, than at any time in this company's history. We are in position to begin to repay the federal government's TARP investments. For these reasons, I decided now is the time to begin to transition to the next generation of leadership at Bank of America." It was reported that this move was his own decision and that he did not receive pressure from the bank's Board of Directors.
Based on the company's most recent proxy statement, his full pension benefits total $53 million. Critics of the financial sector's salary scale have cited this sum as indicative of poor oversight by the board of directors and as an example of inflated executive compensation. As his plan dates back more than seven years, he is still entitled to full benefits. Bank of America has since revised their compensation plan for retiring executives. In October, 2009, at the suggestion of Kenneth Feinberg
, the U.S. Treasury's special master for compensation, Lewis decided to forgo salary or bonus in 2009. His 2008 salary was about $1.5 million. "He has taken home $148.8 million from cash and stock sales since taking over the bank in 2001, according to Equilar
, a compensation research firm. He is also leaving with more than $135 million in retirement benefits, including the pension and $10 million in life insurance benefits, according to an analysis of corporate filings by James F. Reda & Associates, an independent consulting firm."
; the Fifth District’s representative on the Federal Advisory Committee; a member of the board and the executive committee and past chairman of United Way of Central Carolinas, Inc.; a member of the Committee to Encourage Corporate Philanthropy; a director of the Homeownership Education and Counseling Institute; vice chairman of the Corporate Fund Board of The John F. Kennedy Center for the Performing Arts
; and past chairman of the National Urban League
.
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
, the largest bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and second largest in the world. On September 30th, 2009 Bank of America confirmed that Ken Lewis would be retiring by the end of the year. He was replaced by Brian Moynihan
Brian Moynihan
Brian Thomas Moynihan is an American lawyer, businessman and the President and CEO of Bank of America. He also joined the Board of Directors, following his promotion to President and CEO. He resides with his family outside of Boston, Massachusetts.-Early life:Moynihan was born in Marietta, Ohio...
as President and CEO and Walter Massey as Chairman of the Board.
Early life and career
Lewis was born and grew up in Walnut Grove, MississippiWalnut Grove, Mississippi
Walnut Grove is a town in Leake County, Mississippi, United States. The population was 488 at the 2000 census.-Geography:Walnut Grove is located at ....
. He is a graduate of Georgia State University
Georgia State University
Georgia State University is a research university in downtown Atlanta, Georgia, USA. Founded in 1913, it serves about 30,000 students and is one of the University System of Georgia's four research universities...
, where he earned a bachelor of arts degree in finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
from J. Mack Robinson College of Business
J. Mack Robinson College of Business
The J. Mack Robinson College of Business is one of the six colleges at Georgia State University in Atlanta, Georgia. Robinson’s offerings include a Flex M.B.A., Professional M.B.A., Executive M.B.A., Specialized Master's programs, and undergraduate program....
.
He joined NCNB as a credit analyst in 1969, and served as the head of both international and domestic operations when it became NationsBank
NationsBank
NationsBank was one of the largest banking corporations in the United States, based in Charlotte, North Carolina. In 1998, it acquired BankAmerica to become Bank of America.-Corporate history:...
, which would eventually become Bank of America.
Chief Executive Officer
Lewis became CEO, President and Chairman of Bank of America after the retirement of Hugh McCollHugh McColl
Hugh L. McColl Jr. is a fourth-generation banker and the former Chairman and CEO of Bank of America. McColl was a driving force behind consolidating a series of progressively larger, mostly Southern banks, thrifts and financial institutions into a super-regional banking force, "the first...
in 2001.
Recognition
Lewis was named Banker of the Year in 2001, and was the same year honored as Top Chief Executive Officer, according to US Banker. In 2007, Lewis was listed among the 100 Most Influential People in the world by Time Magazine. He was again named Banker of the Year in 2008.Salary
While CEO of Bank of America in 2007, Kenneth D. Lewis earned a total compensation of $20,404,009, which included an annual base salary of $1,500,000, a cash bonus of $4,250,000, stocks granted of $11,065,798, and options granted of $3,376,000. In 2008, he earned a total compensation of $9,003,467, which included a base salary of $1,500,000, stocks granted of $4,255,012, and options granted of $2,973,330. In 2009, he earned a total compensation of $32,171.00 accepting no salary, bonus, or stock options.Engineered takeover of Merrill Lynch
During the financial crisis of 2008, he engineered the takeover of Merrill LynchMerrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
for $50 billion.
Shareholder reorganization
On April 29, 2009, Bank of America shareholders narrowly voted to separate the positions of Chairman of the Board and CEO, effectively removing CEO Lewis from his position as Chairman of the Board of BofA, though he remained both the bank's president and its CEO.Retirement
On September 30, 2009, Lewis announced his retirement from Bank of America effective as of December 31, 2009. Lewis released the statement "The Merrill Lynch and CountrywideCountrywide Financial
Bank of America Home Loans is the mortgage unit of Bank of America. Bank of America Home Loans is composed of:*Mortgage Banking, which originates purchases, securitizes, and services mortgages. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion...
integrations are on track and returning value already. Our board of directors and our senior management include more talent, and more diversity of talent, than at any time in this company's history. We are in position to begin to repay the federal government's TARP investments. For these reasons, I decided now is the time to begin to transition to the next generation of leadership at Bank of America." It was reported that this move was his own decision and that he did not receive pressure from the bank's Board of Directors.
Based on the company's most recent proxy statement, his full pension benefits total $53 million. Critics of the financial sector's salary scale have cited this sum as indicative of poor oversight by the board of directors and as an example of inflated executive compensation. As his plan dates back more than seven years, he is still entitled to full benefits. Bank of America has since revised their compensation plan for retiring executives. In October, 2009, at the suggestion of Kenneth Feinberg
Kenneth Feinberg
Kenneth Feinberg is an American attorney, specializing in mediation and alternative dispute resolution. Feinberg was appointed Special Master of the U.S...
, the U.S. Treasury's special master for compensation, Lewis decided to forgo salary or bonus in 2009. His 2008 salary was about $1.5 million. "He has taken home $148.8 million from cash and stock sales since taking over the bank in 2001, according to Equilar
Equilar
Equilar is a California-based company that provides information about total executive compensation packages of the top officers at publicly traded companies....
, a compensation research firm. He is also leaving with more than $135 million in retirement benefits, including the pension and $10 million in life insurance benefits, according to an analysis of corporate filings by James F. Reda & Associates, an independent consulting firm."
Other roles
He is a member of the Financial Services Roundtable and the Financial Services ForumFinancial Services Forum
The Financial Services Forum is a non-partisan financial and economic policy organization comprising the CEOs of 20 of the largest and most diversified financial services institutions doing business in the United States...
; the Fifth District’s representative on the Federal Advisory Committee; a member of the board and the executive committee and past chairman of United Way of Central Carolinas, Inc.; a member of the Committee to Encourage Corporate Philanthropy; a director of the Homeownership Education and Counseling Institute; vice chairman of the Corporate Fund Board of The John F. Kennedy Center for the Performing Arts
John F. Kennedy Center for the Performing Arts
The John F. Kennedy Center for the Performing Arts is a performing arts center located on the Potomac River, adjacent to the Watergate complex in Washington, D.C...
; and past chairman of the National Urban League
National Urban League
The National Urban League , formerly known as the National League on Urban Conditions Among Negroes, is a nonpartisan civil rights organization based in New York City that advocates on behalf of African Americans and against racial discrimination in the United States. It is the oldest and largest...
.
External links
- Biography from bankofamerica.com
- USA Today profile Sept. 2008