Will Ken Lewis Keep His $125 Million?

Right now, retiring Bank of America CEO Ken Lewis is expected to get a retirement package worth $125 million.

But the government’s pay czar, Kenneth Feinberg, could limit whether Lewis cashes in on retirement benefits and accumulated compensation.

Reuters: The agreements governing Lewis’s severance package pre-date Feinberg’s appointment by President Barack Obama in June. But Congress gave the pay czar broad authority to issue advisory opinions that could impact Lewis.

Feinberg, who declined to comment, is reviewing pay packages for the 25 highest-paid employees at seven companies that needed extraordinary government assistance, including Bank of America. He is expected to begin releasing a first wave of pay rulings by mid-October.

We can’t fully defend Lewis’ record, which led to a $45 billion bailout of the bank, but should we really be breaking employment contracts? It’s a dangerous precedent.

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