Monday, October 27, 2008
And Y'all Thought The Nobel and The Pulitzer Prize Were Jokes...
American Banker to Honor Kenneth D. Lewis With 2008 Banker of the Year Award
During Lewis' tenure, Bank of America has improved customer satisfaction significantly across every major line of business; annual revenue has increased from $33 billion to $66 billion; annual profit has increased from $7.5 billion to $15 billion; assets have increased from $642 billion to $1.7 trillion; market capitalization has grown from $74 billion to $183 billion; and total annual shareholder returns (including stock price growth plus dividends) have averaged 13.3%, doubling peers, the KBW Banks Index, the S&P 500 and the Dow Jones Industrial Average over the same period.
Now I just added up the dividends for the years 2001-2008 and came up with a total of $13.
BAC stock was roughly $24 in January of 2001; right now it is 21.50 per share. Just assume, even though it isn't, assume that the stock is unchanged under Lewis' reign. A $24 stock that gave off $13 in dividends DID NOT average 13.3% annually over 8 years.
It only averaged 6.77% in annual yield.
What a shock - bankers lying...
Now, in American Banker's defense, their field of candidates was grossly narrowed this year with all the CEO firings.
And rightfully, Ken Lewis should have been canned as well.
But still, would it have killed them to say, "Hey, this year no one deserves the recognition"?
Click here to read what I've previously written on Ken Lewis.