'Their Staff...Were Making A Lot More (Than Ours). That Won't Last'

Bank of America CEO Ken Lewis decided it was prudent to release the bank's third-quarter earnings a couple of weeks early. Profit fell 68% to $1.18bn in the period. In order to get ready for the impending $50bn 'merger' with Merrill Lynch, Lewis also cut the bank's dividend in half, and said that he would be raising $10bn in a common stock offering. He also commented: 'These are the most difficult times for financial institutions that I have experienced in my 39 years in banking'.

And for all those Merrill bankers wondering what bonuses will be like in the brave new world next year, you need look no further than the latest issue of 'Fortune' magazine. Featuring an in-depth interview with Lewis, he was happy to hold forth on the subject of employee compensation. Here's what he had to say:

'Merrill was paying typical Wall Street pay. Their staff people were making a lot more than our staff people. That won't last. We intend to pay market instead'.

And complainers shouldn't bother Lewis on this issue if they feel hard done-by. Typically, once he has made his mind up, he ain't for moving. Fortune also has this amusing anecdote to illustrate the point:

'A few years ago, one of his top lieutenants wrote the boss a long memo complaining that he'd been undermined by another executive. A few days later, he found the memo (back) on his desk. At the top, Lewis had scribbled three words: 'Get over it'. In other words, 'Like it, Lump it, or Leave.

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