Reuters: Krawcheck seen bidding final adieu to Wall Street
Regardless of where she goes, Krawcheck will likely be spending several months working out her severance. At a minimum, according to Bank of America’s 2010 proxy filing with regulators, Krawcheck will receive between $2.4 million and $4.7 million in stock grants if she is let go — at a time when BofA shares are worth about half their trading value at the end of 2010.
Based on her past history and that of other fired executives, Krawcheck could take home as much as $5 million to $10 million after negotiations, although Bank of America’s parlous financial state may make a monster payout tough.
“Ten million wouldn’t sound ridiculous in the old world, but we are in a very different world now and the bank is talking about laying off over 40,000 people,” said Steven Hall, managing director of Steven Hall & Partners, a New York-based executive compensation consultant.
Krawcheck’s full severance will depend on whether her departure is characterized as an involuntary termination without cause or a workforce reduction.
“That’s the starting point for the negotiations,” Hall said. “Her lawyers will probably ask for something much higher.”