Workers Lose Jobs, CEO Keeps His After Running Bank Into the Ground

8ar| ol Arer|ca Corp. ras oeer propped up oy S15 o||||or |r ledera| lurds lror lre Trouo|ed Assel Re||el Prograr (TARP), p|us a guararlee ol S118 o||||or ol
|ls assels.[1| Tral's S1,100 lor every Arer|car rousero|d.[2| 8ar| ol Arer|ca ard olrer o|g l|rarc|a| |rsl|lul|ors ray oe lorced lo Wr|le doWr rore ol lre|r |oars,
|ead|rg lo rore |rlus|or ol cap|la| lror lre ledera| goverrrerl.[3|
Tre oar| |osl rear|y S2.1 o||||or |r lre lourlr quarler ol 2008 due lo deeper lrar expecled lrad|rg ard |oar |osses. ll a|so cul |ls d|v|derd doWr lo a perry per
quarler.[1| Ever aller rece|v|rg o||||ors ol do||ars |r laxpayer rorey, lre oar| p|ars lo e||r|rale up lo 35,000 joos over lre rexl lrree years.[5|
VearWr||e, CE0 Kerrelr LeW|s co||ecled rear|y S10 r||||or |r 2008, rore lrar 100 l|res lre average arourl a oar| le||er |s pa|d eacr year.[| 3|rce
oecor|rg CE0 |r Apr|| 2001, LeW|s rece|ved S131 r||||or |r pay, ooruses, sloc| aWards ard pers|or accrua|s.[Z|
NoW, a group ol |rveslors, |ed oy 3Elu ard lre Clw lrveslrerl 0roup, Warls CE0 Ker LeW|s lo go.[8| LeW|s, orce ra||ed as a sav|or ol wa|| 3lreel, ray |ose
r|s joo oecause ol r|s percrarl lor erp|re ou||d|rgacqu|r|rg lWo deep|y lrouo|ed corpar|es, CourlryW|de F|rarc|a| Corp. ard Verr||| Lyrcr & Co., |r |ess lrar
a year.
'l dor'l lr|r| re surv|ves Wrer lr|s |s a|| sa|d ard dore, accord|rg lo Pau| V|||er, ar ara|ysl al Fr|edrar 8||||rgs Rarsey. 'le ras rade sore prelly o|g
r|sla|es over lre |asl coup|e ol rorlrs ard as cord|l|ors |rs|de lral oar| Worser, re's go|rg lo core urder rore ard rore pressure.[9|
Corporale goverrarce experls lau|l lre oar|'s poor corpersal|or pracl|ces lor ercourag|rg excess|ve r|s|-la||rg oy LeW|s, prorpl|rg r|r lo eroar| or lre
acqu|s|l|or spree lral ras cosl srarero|ders dear|y. Nass|r N. Ta|eo, aulror ol Tne 3|aok $uan. Tne lmpaor ol rne lmprooao|e, a ooo| lral exp|a|rs roW lre
lreor|es ol so rary l|rarc|a| experls Were dargerous|y l|aWed, says lral sucr |rcerl|ve pay 'ercourages a cerla|r c|ass ol r|s|-r|d|rg ard delerred o|oW-up. ll
|s lre reasor oar|s rave rever rade rorey |r lre r|slory ol oar||rg, |os|rg lre equ|va|erl ol a|| lre|r pasl prol|ls per|od|ca||yWr||e oar|ers slr||e |l r|cr.[10|
Tre rosl expers|ve ol lrese rergers Was W|lr Verr||| Lyrcr. 8y lre l|re lre dea| c|osed, lre wa|| 3lreel l|rr's |osses lurred oul lo oe lar |arger lrar expecled,
ard NeW Yor| Allorrey 0erera| ArdreW Cuoro ra|sed quesl|ors aooul S1 o||||or |r 'r|dr|grl ooruses pa|d lo Verr||| Lyrcr's erp|oyees jusl oelore lre dea|
c|osed.[11| Near|y Z00 ol lrose Verr||| Lyrcr erp|oyees rece|ved rore lrar S1 r||||or.[12| TWo ol lre ral|or's |argesl pers|or lurds, lre Ca||lorr|a Puo||c
Erp|oyees' Rel|rererl 3ysler ard lre Ca||lorr|a 3lale Teacrers' Rel|rererl 3ysler, are su|rg 8ar| ol Arer|ca, a||eg|rg lral |l 'r|sslaled or or|lled
|rporlarl |rlorral|or aooul Verr||| Lyrcr's l|rarc|a| rea|lr lo srarero|ders oelore lre rerger.[13|
LeW|s a|so ra|sed srarero|ders' |re aller reve|al|ors lral Jorr Tra|r, Verr||| Lyrcr's CE0 Wro so|d lre corpary lo 8ar| ol Arer|ca, sperl rore lrar S1.2
r||||or redecoral|rg r|s oll|ce|rc|ud|rg S35,155 or ar arl|que Frercr corrode ard S1,105 or a Wasleoas|el.[11| 3rarero|ders a|so Were |rlur|aled al
|earr|rg lral Tra|r sougrl a S10 r||||or oorus lor r|rse|l, oul Was lurred aWay oy lre ooard.[15|
lror|ca||y, LeW|s rad expressed d|sda|r lor lre slralosprer|c wa|| 3lreel pay. Accord|rg lo Forlure ragaz|re, LeW|s saW lre acqu|s|l|or ol Verr||| as ar
opporlur|ly lo oar|sr 'lre prol||gale pracl|ces re'd |org rev||ed, espec|a||y |rl|aled pay ard lre r|gr-r|s| lrad|rg lral rad |arded Verr||| |r so rucr lrouo|e.[1|
LeW|s' oWr corpersal|or |s rol sraooy. Aparl lror a sa|ary, oorus, gererous perqu|s|les ard pers|ors, LeW|s ard olrer ser|or execul|ves al 8ar| ol Arer|ca
rece|ve reslr|cled sloc| ard sloc| opl|or grarls lral are |rlerded lo re|p a||gr lre|r |rleresls W|lr lre |rleresls ol |org-lerr srarero|ders. 0ver lre pasl l|ve
years, LeW|s rece|ved sloc| grarls Worlr rear|y S50 r||||or ard opl|ors va|ued al a|rosl S15 r||||or.[1Z| Tr|s Was |rlerded lo l|e lre persora| lorlures ol LeW|s,
Wro oWrs rore lrar 1.5 r||||or srares,W|lr lral ol lre oar|.[18|
8ul rucr ol LeW|s' corpersal|or ras oeer |r casr. l|s guararleed oase sa|ary ras oeer S1.5 r||||or s|rce 2002 Wrer |l Was ra|sed lror S1.33 r||||or,
ersur|rg r|r eacr year rore lrar Wral rosl peop|e ra|e |r a ||lel|re.[19| 8ar| ol Arer|ca's ooard approved lr|s |roW|rg lral ror-perlorrarce pay |r excess
ol S1 r||||or |s rol lax deducl|o|e.[20| Tre Corporale L|orary, a Porl|ard, Va|re-oased corporale goverrarce researcr l|rr, roles lral LeW|s' oase sa|ary |s al lre
90lr percerl||e lor 3lardard & Poor's 500 l|rrs, ard ras expressed 'r|gr corcerr lor 8ar| ol Arer|ca's overa|| execul|ve corpersal|or pracl|ces.[21|
Trer lrere are LeW|s' ooruses. lr recerl years lrese rave oeer al |easl lrree l|res as rucr as LeW|s' sa|ary ard as r|gr as S.5 r||||or |r 200.[22| w|lr 8ar|
ol Arer|ca's 2008 rel |rcore doWr Z3 percerl lror 200Z's rel |rcore ard |ls rar|el cap|la||zal|or doWr 2 percerl lo SZ0 o||||or al lre erd ol 2008 lror S183
o||||or al lre erd ol 200Z, 8ar| ol Arer|ca's d|reclors dec|ded |r ear|y 2009 lral LeW|s ard olrer ser|or execul|ves Wou|d rece|ve ro oorus.[23|