In this Economic crisis and the heavy losses for the industry, The chief executives of five of the six largest U.S banks (The Bank Of America) are not receiving bonuses now because of the low-cut share prices and the government exploit. The E- mail statement which sent to them shows that the company paid according to their performances. Now its tight their payouts because Bank of America bought countrywide Financial Corporation Last year and fastened on its purchase of Merrill Lynch on jan 1. Executives told in their E-mail that they work hard for lot of projects that they potentially worked for the company that will definetely shows the value of the company in the future years.so, they deserve the more bonus.
But the bank profit statements shows that income fell 60% in the first nine months of 2008 and its share fell last year with 67 %. many economist said the Bank of America need more capital to improve their financial position.
CITIGROUP has received $45 billion of capital under the government treasury’s $700 billion Troubled Asset Relief Program (TARP) Bank of America and Merrill Lynch combined received $25 billion.There is no doubt the company getting the government support continuously but it will be harder for them to pay out the large no. of bonuses to senior executives. the bank representative said they need some time to shoe the company performance in point.