Bank of America CEO Brian Moynihan Gets $3 Million Pay Raise -- Update
February 12 2016 - 5:35PM
Dow Jones News
By Christina Rexrode and Peter Rudegeair
Bank of America Corp.'s Brian Moynihan is set to get his biggest
payday as chairman and chief executive of the firm.
Mr. Moynihan, who took the top job at the nation's
second-largest bank by assets in 2010, is receiving a pay package
worth $16 million for 2015, most of it in the form of restricted
stock, the firm disclosed in a regulatory filing Friday. That is a
23% increase from the previous year, when he earned $13
million.
To get the full $16 million, Mr. Moynihan and the Charlotte,
N.C., bank would have to meet certain performance metrics.
The payout for Mr. Moynihan includes $14.5 million of restricted
stock. Mr. Moynihan also was paid $1.5 million in salary, the same
as the previous year. He doesn't get a cash bonus.
For 2015, the bank reported its biggest annual profit in nearly
a decade, a sign that it may be putting some of its crisis-era
legal and regulatory headaches behind it. But annual revenue fell,
and some analysts have questioned how much longer the bank can keep
cutting costs, a key tenet of Mr. Moynihan's strategy.
The bank also is under pressure to get good marks on the Federal
Reserve's stress test after fumbling the past two submissions; the
next submission is due in April. The stock last year fell 5.9%,
more than the 1.6% decline in the KBW Nasdaq Bank index.
For 2014, the board cut Mr. Moynihan's pay to $13 million from
$14 million, in a year when the bank had to pay a record-setting
fine to the Justice Department over mortgage-securities
allegations. The board also promoted Mr. Moynihan to chairman that
year.
Mr. Moynihan's pay raise wasn't as big as J.P. Morgan Chase
& Co. CEO James Dimon's, who will receive $27 million for 2015,
up 35%. Goldman Sachs Group Inc. and Morgan Stanley cut the 2015
pay of their CEOs, a reflection of tough conditions for Wall Street
businesses such as bond trading.
At Goldman, CEO Lloyd Blankfein's pay package dropped 4% to $23
million, while Morgan Stanley's James Gorman took a 7% pay cut to
$21 million.
Mr. Moynihan's largest pay package previously was the $14
million he was awarded for 2013.
Bank stocks are down across the industry so far this year, amid
worries about low interest rates and a global economic slowdown,
though Bank of America's decline has been steeper than some of its
peers. Its shares are down 29% for the year, compared with 19% for
the KBW index.
Whether Mr. Moynihan receives the maximum amount of compensation
under the latest pay package depends on hitting goals for return on
assets, a profitability metric, and growth in adjusted tangible
book value. Bank of America would need to earn an average return on
assets of 0.80% over the next three years for Mr. Moynihan to get
the maximum payout. Last year, the bank's return on assets was
0.74%.
Write to Christina Rexrode at christina.rexrode@wsj.com and
Peter Rudegeair at Peter.Rudegeair@wsj.com
(END) Dow Jones Newswires
February 12, 2016 18:20 ET (23:20 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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