Bank of Amer­ica chief gets a 23 per­cent pay raise

The Pak Banker - - FRONT PAGE -

Bank of Amer­ica awarded chief ex­ec­u­tive Brian T. Moynihan $16 mil­lion for his work last year, in­creas­ing his po­ten­tial com­pen­sa­tion by 23 per­cent. Moynihan re­ceived $14.5 mil­lion in stock grants for 2015 and left his salary un­changed at $1.5 mil­lion, ac­cord­ing to a reg­u­la­tory fil­ing Fri­day. A year ear­lier, the Char­lot­te­based bank, the se­cond largest in the United States, gave the chief ex­ec­u­tive a $13 mil­lion pay pack­age.

Moynihan, 56, sur­vived a bat­tle with in­vestors in 2015 over whether he should be stripped of his role as chair­man as the bank's stock lagged be­hind those of its peers. The com­pany also wran­gled with reg­u­la­tors, as it was forced to re­sub­mit its cap­i­tal plan un­der the Fed­eral Re­serve's an­nual stress test.

Moynihan slashed ex­penses by 24 per­cent last year, partly by putting some of the bank's big­gest le­gal woes be­hind it. Bank of Amer­ica shares slid 5.9 per­cent in 2015, trail­ing the 3.5 per­cent drop of the 90-com­pany Stan­dard & Poor's 500 Fi­nan­cials In­dex.

Half of what the bank granted Moynihan for 2015 is in the form of stock linked to per­for­mance over a three-year pe­riod through 2018, ac­cord­ing to the fil­ing. For Moynihan to re­ceive the full value, Bank of Amer­ica must meet "growth goals" for re­turn on as­sets and ad­justable tan­gi­ble book value dur­ing those years.

Ex­ec­u­tives of some other ma­jor Wall Street banks saw their com­pen­sa­tion for 2015 re­duced as they con­tended with missed fi­nan­cial tar­gets and wan­ing stock prices. Mor­gan Stan­ley cut chief ex­ec­u­tive James Gor­man's pay last month by 6.7 per­cent, to $21 mil­lion, while the Gold­man Sachs Group re­duced chair­man and chief ex­ec­u­tive Lloyd C. Blank­fein's by 4.2 per­cent, to $23 mil­lion. Jamie Di­mon, chair­man and chief ex­ec­u­tive of JPMor­gan Chase, saw his pay boosted 35 per­cent, to $27 mil­lion.

Moynihan, an Ohio-born lawyer who rose through the ranks at FleetBos­ton Fi­nan­cial be­fore Bank of Amer­ica bought it, out­lasted other exec- utives in late 2009 as talks fell apart with CEO can­di­dates from firms in­clud­ing Bank of New York Mel­lon. He gained the chair­man ti­tle in Oc­to­ber 2014 af­ter spend­ing much of his time as chief ex­ec­u­tive deal­ing with the fall­out from his pre­de­ces­sor's ac­qui­si­tions of Mer­rill Lynch and Coun­try­wide Fi­nan­cial. Bank of Amer­ica stock rose 7 per­cent in reg­u­lar trad­ing Fri­day, amid a broad stock rally. But the stock is down about 29 per­cent, year to date.

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