When a CEO sells his Porsche...

As if Bank of America's Ken Lewis didn't have enough to worry about. The Triangle Business Journal reports that in November 2007, Lewis sold his 2007 Porsche 911 turbo coupe, purchased a year earlier, to Chief Financial Officer Joe Price for $100,000. The deal was not disclosed on any formal corporate disclosure documents, but it does raise some eyebrows. Price was the fourth CFO at Bank of America since 2004, and obviously the position was crucial as the credit crisis got underway.

One professor told the publication: "The mere fact of two executive officers of a publicly traded firm engaging in such a transaction surfaces several potential ethical land mines, particularly if it's determined that the Porsche traded hands for less than fair market value... Among the potential conflicts of interest inherent in such a transaction include Price's responsibility to objectively account for the financial transactions and condition of Bank of America, and Lewis' responsibility to objectively evaluate Price's performance as a subordinate and direct report." This may pale in comparison to other issues at Bank of America, but perhaps the board ought to address it as an ethics concern. 

For more:
- here's the article

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