BANK of America will pay $11m (£7m) 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 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 $5.15m.
Price, a Bank of America veteran, gets $4.15m. Each will also receive $850,000 over a one-year period.
Price was head of consumer banking and Krawcheck led wealth and investment operations. Both have agreed not to compete against the company for a year or make negative comments about it.
The bank last month eliminated their positions as part of a cost-cutting initiative. 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 programme, which is designed to reduce costs as the mortgage crisis, new regulations, and low loan demand crimp revenue.