FleetBoston Financial Corp.’s top
five executives were given restricted-stock awards last month
worth $23 million in addition to their salaries, bonuses and
payments of $36 million in 2003.
Chairman and Chief Executive Officer Charles Gifford
received restricted stock worth $6.5 million on Feb. 17 and Chief
Operating Officer Eugene McQuade was given stock worth $5.2
million. Restrictions on the stock are lifted if the executives
are fired after the completion of its takeover by Bank of America
Corp, according to FleetBoston’s annual report, filed Tuesday.
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Bank of America, led by Chief Executive Officer Kenneth
Lewis, agreed to pay about $44 billion for FleetBoston to make
the Charlotte, N.C.-based company the largest U.S. bank
by deposits and second to Citigroup Inc. in terms of assets. As
part of the negotiations, Bank of America agreed to give some
FleetBoston executives top management jobs at the new bank.
Gifford, who will become chairman of the new company, was
paid $11 million including bonus and share awards in 2003,
FleetBoston said in its report, filed with the Securities and
Exchange Commission.
McQuade, who will become president of Bank of America,
earned $8.07 million in 2003. Jay Sarles, a vice chairman at
FleetBoston who will be co-head of merger integration, was paid
$7.73 million in 2003 in addition to a $5.2 million restricted-stock award on Feb. 17. He will also be a vice chairman at Bank
of America and special adviser to Lewis.
Brad Warner, head of FleetBoston personal financial services
who becomes the combined bank’s president of small business and
premier banking, earned $4.95 million last year and was given an
extra $3.2 million in stock.
Brian Moynihan, who oversees FleetBoston’s asset management
operations and becomes head of Bank of America’s wealth
management division, earned $4.42 million and was given $3.2 million in stock.
Three of the executives, McQuade, Sarles and Moynihan also
will receive severance payments worth $20.2 million whenever they
leave Bank of America.
Upon McQuade’s departure, he will receive $7.8 million in
deferred compensation, according to the firm’s annual report.
Sarles will get $7.4 million and Moynihna will net $5 million
after they leave Bank of America.
Gifford and Warner do not have employment contracts and will
therefore not receive any deferred compensation, according to
FleetBoston Financial Jim Mahoney.
The awards were earlier reported in the Wall Street Journal.
Bloomberg News
