Bank of America awards CEO Lewis $11.7 mln stock

Bank of America Corp. said it awarded Chief Executive Kenneth Lewis $11.7 million of restricted stock as part of his compensation for 2005, when the No. 2 U.S. bank's profit rose 19 percent to a record.

Lewis was on Wednesday awarded 263,697 shares valued at $44.36 each, a late Thursday filing with the U.S. Securities and Exchange Commission shows. The shares vest after three years. The bank also awarded Lewis 425,000 stock options with a $44.36 exercise price.

Alvaro de Molina, who became chief financial officer in September, was awarded 78,427 restricted shares at the same price, for a value of $3.48 million, a separate filing shows.

Bank of America last month said 2005 net income totaled $16.9 billion, or $4.15 per share, helped by loan and deposit growth, the addition of 2.3 million net new checking accounts, and a 32 percent gain in debit card revenue.

Shares of Bank of America fell less than 2 percent in 2005, lagging the Philadelphia KBW Bank Index <.BKX>, which was little changed.

Lewis at the end of January 2005 added the chairman title, replacing Charles "Chad" Gifford, the former chief executive of FleetBoston Financial Corp.

Bank of America bought Fleet for $48 billion in April 2004. On Jan. 1, 2006, it announced the completion of its $34.2 billion purchase of MBNA Corp., which made it the largest U.S. credit card issuer.

The bank is likely to report Lewis' total compensation for 2005 within the next several weeks. Lewis, who became chief executive in 2001, was awarded $22.5 million for 2004, including $11.8 million of restricted stock.

Bank of America shares closed Thursday at $44.69 on the New York Stock Exchange.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.