BofA CEO’s pay up 25%, Citi boss’ down 6%
new york — Bank of America Corp awarded chief executive officer Brian T. Moynihan $20 million for his work last year, raising his compensation 25 per cent, while Citigroup cut CEO Mike Corbat’s by 6.1 per cent to $15.5 million.
Moynihan received $18.5 million in stock grants for 2016, according to a regulatory filing, up from the $14.5 million he received for 2015. He hasn’t received a cash bonus since 2007. Corbat’s pay included a $4.2 million cash award and $9.8 million in shares that pay out over years based on performance. Both executives received salaries of $1.5 million.
Moynihan, 57, has worked to boost the lender’s profitability through cost reductions and by resolving legal matters left over from the financial crisis. The bank increased profit by 13 per cent to $17.9 billion in 2016, and Moynihan said in April he’d cap expenses at $53 billion by the end of 2018, a $2 billion drop from last year.
Despite dialing back costs, Moynihan didn’t achieve his long-term 60 per cent efficiency ratio target in 2016. Bank of America, the second-largest US lender also hasn’t achieved its 12 per cent target for return on tangible common equity, which remained below 10 per cent at the end of last year.
Citigroup’s profit fell 14 per cent and return on assets failed to meet the 2016 target, leading CLSA analyst Mike Mayo to criticise management for missed goals and uncertain targets that prevent investors from being able to hold the firm accountable.
The CEOs of other major Wall Street banks saw their 2016 compensation increase. JPMorgan Chase & Co boosted CEO Jamie Dimon’s target pay by 3.7 per cent to $28 million and Morgan Stanley’s James Gorman was awarded $22.5 million, a 7.1 per cent increase.
Goldman Sachs Group hasn’t yet disclosed pay details for Lloyd Blankfein. — Bloomberg