Bank of America Corp. Chief Executive and
Chairman Kenneth Lewis is recommending that he and his top executives
receive no bonuses for 2008, saying he expects the bank's final results
to be below expectations, according media reports citing an internal
memo sent out Tuesday. The Charlotte, N.C.-based bank's board still has to verify Lewis' recommendation, the reports said.
Analysts
polled by Thomson Reuters, on average, forecast fourth-quarter earnings
of 15 cents per share on revenue of $20.9 billion, and 2008 earnings of
$1.23 per share on revenue of nearly $78 billion. Bank of America is
expected to report earnings Jan. 20.
Lewis confirmed the decision in an e-mail sent
to his eight direct reports Tuesday afternoon. Bank of America
spokesman Scott Silvestri confirmed Lewis' actions and recommendation.
The move puts Lewis on a long list of CEOs in the U.S. financial services industry to decline bonuses this year.
Bank
of America is among several financial institutions who have received
financial assistance from the U.S. government. As a condition for
receiving government money, lawmakers are making companies reel in
bonuses. The congressional backlash and public outrage followed a
series of high-profile cases involving Wall Street executives walking
away with millions of dollars after their firms received taxpayer
money.
Last
week, Citigroup Inc., which has received $45 billion for the
government, said it would place strict limits on management's
compensation, including no severance for its top five executives. As
part of the decision, Citi CEO Vikram Pandit and Chairman Win Bischoff
opted to forego their 2008 bonuses.
In
November, American International Group Inc. said it would be limiting
how much it pays its top executives, including granting a $1 salary for
2008 and 2009 to its CEO Edward Liddy.
New York-based AIG has received a roughly $150 billion rescue package from the federal government. 
