Bank Watch

Bank of America CEO Brian Moynihan’s pay rises to $16M

Bank of America chief executive Brian Moynihan was awarded $16 million for his performance in 2015, a jump from $13 million from the year before.
Bank of America chief executive Brian Moynihan was awarded $16 million for his performance in 2015, a jump from $13 million from the year before. jsimmons@charlotteobserver.com

Bank of America chief executive Brian Moynihan was awarded $16 million for his performance in 2015, a jump from $13 million from the year before.

The pay package is the most Moynihan has been awarded since becoming CEO in 2010. The last raise he got was in 2013.

His pay for 2015 included $14.5 million in stock as well as unchanged base salary of $1.5 million, according to a securities filing late Friday.

Like the previous year, Moynihan did not get a cash bonus. Of his stock award, 50 percent will be fully paid out only if the bank meets specific financial goals.

The increase comes in a year in which lower legal costs helped the bank post a profit of $15.89 billion – three times its 2014 earnings and the highest since a record $21 billion in 2006.

The bank’s profitability has improved as Moynihan has guided the bank past a quagmire of financial crisis-era legal issues that have deflated its earnings.

In a show of confidence for Moynihan, 56, shareholders last year endorsed the board’s decision in 2014 to bestow on him the chairman title.

The 2014 move angered some shareholders because it rolled back a shareholder resolution approved in 2009 to split the chairman and CEO roles. That binding resolution reflected shareholder frustration with then-CEO Ken Lewis’ handling of the bank’s Merrill Lynch purchase.

In Friday’s filing, the bank noted the company demonstrated “continued progress” in 2015. The bank highlighted its efforts to simplify the company and the resolution of crisis-era mortgage issues, among other achievements.

But 2015 was also a year in which the bank booked another flub on its “stress test,” an exam run annually by the Federal Reserve to measure banks’ resiliency to a potential downturn. The bank had to resubmit its test after the Fed found “deficiencies” and “weaknesses” in its capital planning processes.

The bank’s share price also continues to struggle. It was down about 6 percent last year, and has fallen an additional 29 percent this year.

Moynihan is still paid less than his peers.

JPMorgan Chase boosted CEO Jamie Dimon’s 2015 pay 35 percent to $27 million, Bloomberg reported last month. Morgan Stanley cut CEO James Gorman’s compensation by 6.7 percent in 2015, and Goldman Sachs Group awarded CEO Lloyd Blankfein $23 million in salary and cash and stock bonuses for 2015, down 4.2 percent from a year earlier, according to Bloomberg.

Wells Fargo has not yet disclosed 2015 compensation for CEO John Stumpf.

Deon Roberts: 704-358-5248, @DeonERoberts

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