Bank of America Corp. Chief Executive Kenneth Lewis posted a $91.58 million gain from the exercise of options and vesting of stock awards in 2006, supplementing a $22.85 million compensation package, as the second largest U.S. bank's profit rose 28 percent to a record.

Lewis, 59, realized $77.04 million from the exercise of 4.08 million previously awarded stock options, and had $14.54 million of stock awards vest, according to the bank's proxy filing with the U.S. Securities and Exchange Commission.

These awards were in addition to a compensation package for 2006 comprising a $1.5 million salary, $14.63 million of stock and option awards, $6.5 million of incentive awards and $219,969 of other compensation. The latter included the use of a corporate aircraft, tax and financial planning and security provisions.

Resilient to the CEO revolving door
Compensation is based on salary, bonus, the value of stock options and other awards granted during the year and incentives and perks. Lewis also received $1.65 million of dividends on unvested restricted stock. He exercised no stock options in 2004 and 2005, according to prior proxy filings.

The $114.4 million total for Lewis is "a high number, but you have to measure it against his contributions to the company," said David Yermack, a professor and executive pay specialist at New York University's Stern School of Business. "You have to leave it for the market to do that."

Charlotte, North Carolina-based Bank of America (Charts) said 2006 profit totaled $21.13 billion, or $4.59 per share, helped by capital markets and investment banking, investment gains and a 148 percent jump in card income following the $34.2 billion purchase of MBNA Corp.

The bank's shares rose 16 percent in 2006, topping the 13 percent increase in the Philadelphia KBW Bank Index.

Comparisons
Lewis' $114.4 million total is higher than the $88.9 million that Wells Fargo & Co. (Charts), the fifth largest U.S. bank, reported for Chief Executive Richard Kovacevich. This included $26.86 million of compensation and $62.01 million from the exercise of stock options.

Citigroup Inc. (Charts), the largest U.S. bank, reported a $30.1 million total for Chief Executive Charles Prince, including $24.87 million of compensation. Wachovia Corp. (Charts), the fourth largest bank, reported a $22.6 million total for Chief Executive Ken Thompson, including $18.26 million of compensation.

Brian Foley, a compensation specialist in White Plains, New York who reviewed Bank of America's proxy, estimated that Lewis still has more than $175 million on the table.

He said this includes about 1.5 million shares worth $76 million, about $53 million of value from unexercised stock options and unvested restricted stock, and $49 million of accumulated pension benefits.

"He's got a lot, but given the bank's size, it's not like he's sitting on a mountain of equity the way Sandy Weill did at Citigroup," Foley said, referring to the former Citigroup chairman and chief executive.

Weill had close to $800 million of Citigroup stock when he became chairman emeritus last April.

Several Bank of America executives each received compensation for 2006 ranging from $8.6 million to $9.6 million, the bank's proxy shows. These included risk chief Amy Brinkley, technology and services chief Barbara Desoer, consumer and small business banking chief Liam McGee, wealth and investment management chief Brian Moynihan and former chief financial officer Alvaro de Molina.