Listen up, three Bank of Amerillwide employees who haven’t been fired– management wants to keep you, bad. So bad, that while they’re unwilling to actually improve the terms under which you’ll work for the Charlotte-based cesspool, they are willing to perform a head bob of words re: your bonus. Moving forward, think of it as a “Long Term Award,” and not the answer to the question “what does it feel like to be ass-raped over several years time.” Oh, and don’t forget about the reusable mug. That’s not something you want to walk away from.
Award purpose: The Long-Term Cash Award is designed to improve retention of key associates and deliver competitive incentive compensation.
Award determination: Your 2009 stock option awards under the KASP for the 2008 performance year will be converted to a Long-Term Cash Award. The Long-Term Cash Award amount is calculated to include interest, and no additional interest is credited with respect to the award.
Other important facts
Payment schedule: The award will become earned and payable in three equal installments provided you are still employed at Bank of America or one of its subsidiaries on these applicable payment dates:
Payment date, Amount payable
Feb. 2010: First anniversary of grant date, One-third of award
Feb. 2011: Second anniversary of grant date, One-third of award
Feb. 2012: Third anniversary of grant date, One-third of award
Payment will be made as soon as administratively practicable, generally within 30 days after the applicable payment date.
Impact of termination of employment on earning of award: The extent to which the award is earned in connection with termination of employment depends on the reason for termination as described below. These are the same rules that would have applied to a restricted stock award.
Death or Disability: Any unearned portion of the award is immediately earned as of the date of your termination of employment if your termination is due to death or “disability”, as defined in your award agreement.
Workforce Reduction or Divestiture: In the case of termination by the company due to “workforce reduction” or “divestiture” as defined in your award agreement, the next unearned increment (generally, the next one-third of the award) becomes earned. Subject to the Rule of 60 provisions below, any remaining unearned portion of the award will be canceled.
Termination by Bank of America with Cause: If your employment is terminated by the company for cause, your right to receive any unearned portion of the award is canceled as of your employment termination date.
All Other Terminations: Subject to the Rule of 60 provisions below, if your employment terminates for any other reason, including termination by the company without “cause” (other than workforce reduction or divestiture) or voluntary termination by the associate, any unearned portion of the award will be canceled.
So…we don’t yet know what this mysterious “Rule of 60″ says, but being terminated through a layoff or spinoff means you lose 2/3 of your deferred comp.
Worse, if you are fired without cause, you lose all of your deferred comp.
That’s a seriously crappy plan. Does this forfeiture apply to senior executives? Do they forfeit accrued bonuses if the Board decides their services are no longer required?
I really thought BAC was going to pull through this mess but moves like this just mean all of the talent is going to walk and Ken is going to be left with the deadwood.
Time to start looking through the ex-Merrill resumes…
Man, the “North Carolina” in them is REALLY starting to come out.
“All Other Terminations: Subject to the Rule of 60 provisions below, if your employment terminates for any other reason, including termination by the company without “cause” (other than workforce reduction or divestiture) or voluntary termination by the associate, any unearned portion of the award will be canceled.”
WHAT?!?!? So you can do your job fantastically well, they fire you without cause, and they can avoid paying you? What is to stop them laying EVERYONE off and hiring back others more cheaply?
If this is as it reads, it really, really sucks.
rule of 60 = 60 ways to anally rape your employees
Rule of 60 I am guessing means that if the sum of your years of service and age >= 60, you can leave with everything vested.
In other words, there’s no reason to work for BofA.
3 Yeah, what is to stop them? If they can hire someone else to do your job more cheeply, I’d say they should go for it. Why is it that everyone here stops preaching Atlas Shrugged the minute it starts to impact them.
@7 – and nothing stops the best employees from walking out of BAC and getting a job at a bank that won’t screw them over.
Worse, my semi-ignorant friend, this plan is for the 2008 bonuses. So a poor BAC MD toiled away all year making money for the shareholder with the understanding that he’d be fairly compensated, only to find he can lose the bulk of his comp if he is fired without cause over the NEXT THREE YEARS.
8 I’m having trouble finding any sympathy for that MD, because as you said, if he can in fact find a better deal elsewhere he’s free to take it. Again, another example of a master of the universe that turns into a whiny baby and stops preaching survival of the fittest the minute it starts impacting him.
The more important consideration here is that it appears that a stock option – typically the right to buy shares for the next 10 years at the price on the grant date – has been converted to a cash award. What are the terms of that award? Is there any sharing of upward appreciation in the stock? That’s what you kids should be sniping over, not that it can be cancelled it you’re terminated (which is SOP for this sort of thing). Jeez..
somebody help me here- did those poor slobs just have to sell their restricted shares for $4/shr NPV?
@8: don’t forget the truly staggering costs of the gardening time if he exercises his own option to leave.
@1-12:
Don’t you guys get it… if they outsource your job to India—your bonus is gone poofta.
I expect space aliens will now take the Penis Building in charlotte and now beam parts of it over to Hyderabad and Mumbai.
The new bank will be called ICICIUrJob.
13 No, no. The good jobs are not going to India. See 10/11 – thats the big issue here.
7,9 —
That is nonsense. First, simply because someone can go and change jobs doesn’t mean everything is hunky dory. You still lose a significant portion of earnings. Second, just because someone believes in free enterprise doesn’t mean that they should be ok with someone else treating them like crap. I think it’s a bad idea for employers to mistreat their workers, even though I don’t want a lot of government interference in private employment. That doesn’t mean I also think that the employees should not complain or feel bad that management screwed them. I know, this is a really subtle point that may be too hard for the left to comprehend.
Please be to explain “market cap.” I new analyst 4u in Bombay
@16 – Oh herro prease.
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