In letter to board of directors, Comptroller also condemns misuse of sensitive information and withholding credit card rewards
Today, New York City Comptroller Brad Lander urged Bank of America (BofA) to initiate a clawback of executive compensation after new revelations of egregious junk fees, misuse of sensitive information and the withholding of credit card rewards. In a new letter to the Board of Directors, including Compensational and Human Capital Committee Chair Monica C. Lozano, Lander pressed the bank to promptly disclose the details of the clawback decisions, along with the findings of any internal investigations supporting such determinations.
Last week, BofA agreed to pay customers more than $100 million and pay $150 million in penalties to the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) for myriad violations and illegal activity. BofA’s actions included double-dipping on fees to customers with insufficient funds in their account, withholding credit card reward bonuses and opening accounts for customers without explicit authorization using their personal, sensitive information.
“With New Yorkers trusting them to protect their life savings, banks must be held responsible for their actions and engagement with consumers,” said New York City Comptroller Brad Lander. “Instituting a clawback of incentive compensation is a critical accountability measure, and the onus is on the Board of Bank of America to re-establish clear expectations of ethical conduct and responsible business practices.”
The letter specifically urges the Compensation and Human Capital Committee and the Board to disclose the following:
- The details of any compensation clawed back from any senior executive, including the executive’s maximum compensation that was eligible for recoupment;
- The general circumstances of any compensation clawed back from lower-level employees, including the number of employees and aggregate compensation clawed back by individual business unit or location; and
- The reports from all internal Board or company investigations relied upon by the Compensation and Human Capital Committee to reach its clawback determinations.
Comptroller Lander serves as the investment advisor to, and custodian and trustee of, the New York City Retirement Systems (NYCRS), which is responsible for the retirement security of nearly 800,000 public sector workers and retirees and has $250 billion in assets under management. As of May 31, 2023, the Systems hold more than 10.5 million shares in the bank, valued at more than $300 million.
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