BofA Increases Moynihan’s Pay 71% to $12 Million in 2012Hugh Son
Bank of America Corp. boosted Chief Executive Officer Brian T. Moynihan’s 2012 compensation by more than 70 percent to about $12 million and agreed to increase his base salary for this year.
Moynihan received $11.1 million in stock grants for 2012, almost doubling the amount he got the previous year, according to a regulatory filing yesterday. For 2013, the bank increased his base salary to $1.5 million, compared with $950,000 for each of the previous three years, according to a person briefed on the matter. The person asked for anonymity because the full value of the pay package hasn’t been made public yet.
Bank of America, the second-biggest U.S. lender by assets, rose 109 percent last year in New York trading, the first annual gain of Moynihan’s three-year tenure, as capital levels improved and the firm settled mortgage disputes. Moynihan, 53, has sold more than $60 billion in assets to boost capital and targeted $8 billion in annual expense savings by 2015 at the Charlotte, North Carolina-based firm.
“His compensation is a product of what the market and board perceives to be his leadership,” said Gustavo Dolfino, a former UBS AG banker and now president of Whiterock Group LLC, a New York-based executive-search firm. “This kind of a raise is indicative of the board supporting what he’s doing.”
Other bank CEOs didn’t fare as well as Moynihan, whose stock was the best performer in the Dow Jones Industrial Average. JPMorgan Chase & Co. CEO Jamie Dimon had his 2012 pay cut in half to $11.5 million after an internal review concluded that he bore responsibility for the $6.2 billion “London Whale” trading loss. Dimon’s $1.5 million salary was left unchanged while his bonus fell to $10 million in restricted shares, the New York-based bank said in January.
Morgan Stanley CEO James Gorman saw his compensation drop 7.1 percent to $9.75 million. The New York-based firm almost doubled his salary to $1.5 million and said Gorman’s long-term incentives will be worth more if performance targets are met.
Goldman Sachs Group Inc. CEO Lloyd C. Blankfein’s bonus surged 90 percent to about $19 million, including $13.3 million in restricted stock and $5.7 million in cash, a person with knowledge of the matter said in January. He also receives a $2 million salary.
Bank of America posted net income of $4.2 billion in 2012, compared to $1.4 billion in 2011. Revenue at Bank of America will rise faster than at Wells Fargo and JPMorgan over the next three years as the bank lowers its borrowing costs, Richard Staite, an analyst with Atlantic Equities LLP, said last week in a research note.
Co-chief operating officer Thomas Montag, who runs investment banking and trading, was awarded $8.3 million in equity awards, according to a filing. David Darnell, the other COO who manages retail banking and wealth management, got awards of $5.2 million. Chief Financial Officer Bruce Thompson got stock units pegged at $6.1 million.
While Moynihan’s bonus didn’t include a cash component this year, compensation for other executives may include it, said the person. The value of the equity awards is tied to the lender’s $12.03 stock price on Feb. 15.