Banking

Bank of America just disclosed what kind of pay raise it gave its CEO

Bank of America and Wells Fargo are on different paths. What does it mean for Charlotte?

Bank of America and Wells Fargo, are the two biggest banks in Charlotte. However, the two banks are completely different.
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Bank of America and Wells Fargo, are the two biggest banks in Charlotte. However, the two banks are completely different.

Bank of America CEO Brian Moynihan’s compensation is increasing by 15 percent to $26.5 million, the Charlotte-based bank disclosed Friday.

The bank’s board has awarded Moynihan $25 million in stock and an unchanged base salary of $1.5 million for his performance in 2018, according to a securities filing. As in previous years, Moynihan did not receive a cash bonus. His pay for 2017 included $21.5 million in stock.

In explaining the increase in compensation, the filing pointed to the bank’s record earnings of $28.1 billion last year. The filing also noted disciplined risk and expense management under Moynihan.

Moynihan, 59, is in his 10th year as CEO of the second-largest U.S. bank by assets.

Of Moynihan’s stock awards, half are performance-based shares that will be paid only if the bank meets certain financial goals. A portion of the remaining stock awards are shares that he will receive over the next three years.

Moynihan becomes the latest Wall Street chief executive whose new compensation figures are being disclosed.

Last month, New York-based JPMorgan Chase reported that it increased CEO Jamie Dimon’s total compensation by more than 5 percent to $31 million. The figure includes a base salary of $1.5 million.

Also last month, New York’s Morgan Stanley disclosed giving $29 million in compensation to CEO James Gorman. That’s up 7.4 percent from the year before, Bloomberg reported.

Goldman Sachs Group this month disclosed CEO David Solomon received $23 million in compensation for 2018, including a base salary of $1.8 million. Last year, Solomon replaced CEO Lloyd Blankfein, who stepped down in October.

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Brian Moynihan, president and chief executive officer of Bank of America

San Francisco-based Wells Fargo, which has its largest employment hub in Charlotte, has not yet announced 2018 compensation for CEO Tim Sloan. New York’s Citigroup also has not yet disclosed its latest compensation for CEO Michael Corbat.

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Deon Roberts has covered Charlotte’s financial services industry for The Charlotte Observer since 2013. His beat includes Bank of America and Wells Fargo. He attended Loyola University in New Orleans and is a native of Lafitte, La.
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