BAC Bank of America Corporation

By Rachel Louise Ensign 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (February 10, 2018).

Bank of America Corp. Chief Executive Brian Moynihan is set to receive a 15% bump in pay for 2017, a year in which the bank hit new profit milestones.

Mr. Moynihan is expected to receive total compensation of $23 million for 2017, his biggest pay package since becoming chief executive more than eight years ago, according to a regulatory filing the bank made Friday. He received $20 million for 2016.

The 2017 package for Mr. Moynihan includes $21.5 million of restricted stock. To get the full value of the award, Mr. Moynihan and the bank will have to meet certain performance metrics. Mr. Moynihan also will receive $1.5 million in salary, the same as the previous year. He doesn't get a cash bonus.

Bank of America's stock has rallied since the 2016 presidential election set off both a stock-market and bank-stock rally. Though the share price has slipped during the recent market selloff, it is still up 30% in the last 12 months, the best of the big banks.

For 2017, the bank posted a $21.1 billion profit, excluding charges tied to the recently passed tax bill. That roughly matched the bank's all-time profit record from 2006, when it was a simpler consumer-focused firm that hadn't yet bought ailing mortgage lender Countrywide Financial Corp. or investment bank Merrill Lynch & Co.

Bank executives say the 2018 outlook is bright. That is because the one-time hit from the tax bill is in the past and expected to be outweighed by the law's longer-term benefits.

Fellow big-bank Chief Executive James Dimon, who leads JPMorgan Chase & Co., also got a raise for 2017. Last month, that bank said Mr. Dimon received a compensation package valued at $29.5 million in 2017, up 5.4% -- or $1.5 million -- from 2016.

Write to Rachel Louise Ensign at rachel.ensign@wsj.com

(END) Dow Jones Newswires

February 10, 2018 02:47 ET (07:47 GMT)

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