Jan. 6 (Bloomberg) -- Bank of America Corp. Chief Executive Officer Kenneth Lewis recommended that he and other senior executives not receive bonuses after five straight quarters of declining profit.

The board is likely to accept the recommendation, according to a memo Lewis sent to employees today. Spokesman Scott Silvestri confirmed the memo’s authenticity.

“This was a difficult decision because we have worked hard and made progress on many projects that will create value for our company in future years,” Lewis said in the memo. “Nonetheless we are a pay-for-performance company.”

CEOs are facing pressure to limit bonuses after boosting bank capital by selling preferred shares to the U.S. Treasury. Bank of America, which raised $15 billion under the Treasury plan, took advantage of slumping markets last year to buy Countrywide Financial Corp. and Merrill Lynch & Co. While the purchases made the company the largest U.S. bank by assets, its shares slumped by two-thirds and the dividend was halved.

Lewis, 61, joins Wall Street CEOs including Citigroup’s Vikram Pandit, Goldman Sachs Group Inc.’s Lloyd Blankfein and Morgan Stanley’s John Mack in forgoing bonuses after the worst financial crisis since the Great Depression shattered share prices. JPMorgan Chase & Co. CEO Jamie Dimon doesn’t plan to take a bonus this year, a person familiar with his thinking said.

Thain’s Example

Former Merrill Lynch CEO John Thain, who now heads investment banking and wealth management at Bank of America, agreed last month to forgo a year-end bonus after New York Attorney General Andrew Cuomo and U.S. Senator Harry Reid urged the firm’s board to show restraint on pay. Thain, 53, had suggested a bonus of $5 million to $10 million in conversations with board members, according to a person familiar with the matter who declined to be identified because the deliberations were confidential.

House Financial Services Committee Chairman Barney Frank said today he favors a “no bonus rule” for some executives at companies taking part in the bank-rescue plan. Congress is considering how to allocate an additional $350 million under the Treasury program.

Business leaders understand that government assistance means more government involvement, said Tim Bartl, general counsel of the Center for Executive Compensation in Washington, D.C. “At the top of the house in some companies you need to demonstrate leadership when you’ve had earnings that weren’t sustainable,” he said.

Shareholder Question

Lewis declined to comment on bonuses when asked by a shareholder last month about the subject during the company’s special meeting to approve the Merrill Lynch purchase. He had $24.8 million in total compensation last year, 11 percent less than the previous year, according to a regulatory filing.

The chief executive didn’t provide details on the bank’s 2008 performance, which he expects to come in below expectations. Bank of America has said it will announce its fourth-quarter earnings on Jan. 20.

A call to Temple Sloan, Bank of America’s lead director, wasn’t immediately returned.

To contact the reporter on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net

Last Updated: January 6, 2009 18:09 EST