Bank of America CEO’s pay falls amid slump in dealmaking, recession woes

Pay package follows an industrywide focus on compensation and other expenses

Bank of America CEO Brian Moynihan’s total compensation declined 6.3 per cent to $30 million for his work in 2022, a year in which profit tumbled and the shares sank.

The board granted Moynihan $1.5 million in salary and $28.5 million in stock-based incentive awards, the Charlotte, North Carolina-based lender said Friday in a filing. A year ago, Moynihan’s compensation was boosted 31 per cent to $32 million as the firm set a record for profitability.

The pay package follows an industrywide focus on compensation and other expenses amid a slump in dealmaking and concern about the impact a potential recession would have on Wall Street revenue.

Keeping a lid on costs

Bank of America is seeking to reward its best employees while keeping a lid on costs. The firm has already been forced to scale back on hiring plans, even as it added headcount in the fourth quarter. Net income in 2022 fell to $27.5 billion from a record $32 billion a year earlier.

Restricted stock awards

This year, the firm is awarding a pool of restricted stock to employees who earn up to $500,000 to retain workers. It is the sixth year the bank has paid such awards, which now total more than $4 billion.

The bank’s shares plunged almost 26 per cent in 2022. The stock has rebounded about 10 per cent since then, to $36.43 at the close of regular trading in New York Friday.

Moynihan, 63, was promoted to CEO in 2010 in the wake of the global financial crisis, and has steered the lender through the pandemic. He has signaled his interest in staying on for years to come.

6.3% decline in Moynihan’s total compensation

30% drop in Goldman Sachs CEO’s compensation