BofA Said to Boost CEO’s Compensation 17% to $14 MillionHugh Son
Bank of America Corp. awarded Chief Executive Officer Brian T. Moynihan $14 million for last year, boosting his pay 17 percent after profit more than doubled.
Moynihan received $12.5 million in stock grants for 2013, the firm said yesterday in a filing to the U.S. Securities and Exchange Commission. He got no cash bonus for last year, and his $1.5 million salary will remain unchanged in 2014, said a person with direct knowledge of the matter who asked not to be named because the company hasn’t yet disclosed the CEO’s full package.
Moynihan, 54, has spent his four years atop the nation’s second-largest bank resolving disputes tied to shoddy home loans and foreclosures, most of them rooted in his predecessor’s 2008 takeover of Countrywide Financial Corp. The Charlotte, North Carolina-based firm’s turnaround gained speed last year as mortgage costs subsided, revenue steadied and the stock climbed 34 percent.
“They felt justified giving him a raise because the bank’s performance improved, but they didn’t give him an outrageous raise,” said Jeanne Branthover, managing director at Boyden Global Executive Search in New York. “They’re also looking at how the outside world views this, and so they were relatively conservative.”
Half of Moynihan’s equity awards are restricted shares tied to the firm’s future performance, according to the filing. The rest are paid out in regular intervals. Last year, the bank raised Moynihan’s salary to $1.5 million, effective that February, compared with $950,000 the three previous years.
Bank of America’s annual profit rose to $11.4 billion in 2013 from $4.2 billion the prior year, which was marred by costs from legal settlements. Expenses declined 4 percent while revenue slid less than 1 percent.
The board’s compensation committee is led by Monica C. Lozano, the CEO of Impremedia LLC, the Spanish-language news and information firm based in Brooklyn, New York.
In previous years, Bank of America paid co-Chief Operating Officer Thomas K. Montag, 57, more than Moynihan, his boss. Montag, who runs investment banking and trading, joined Bank of America during its 2009 takeover of Merrill Lynch & Co. He had been Goldman Sachs Group Inc.’s head of trading.
Montag’s total compensation reached $14.5 million for 2012. For last year, he got $8.7 million in equity awards, the firm said yesterday. His total pay typically isn’t disclosed until the firms’ proxy filing is released later in the year.
Moynihan, who became CEO after surviving a public search for Kenneth D. Lewis’s successor in late 2009, also trailed his peers in compensation.
JPMorgan Chase & Co. CEO Jamie Dimon, 57, got a 74 percent raise to $20 million for 2013. The increase for a year in which the firm reached more than $23 billion in legal settlements was criticized by U.S. lawmakers including Elizabeth Warren, a Democratic senator from Massachusetts. His New York-based bank is the nation’s biggest.
Goldman Sachs CEO Lloyd C. Blankfein, 59, saw his bonus increase 11 percent to $21 million. He also gets a $2 million salary. Including an additional long-term incentive, his total compensation a year ago amounted to $26 million, the most among U.S. bank CEOs that year and his biggest package since he set a Wall Street record of $68.5 million in 2007.
Morgan Stanley paid 55-year-old Chairman and CEO James Gorman $5.1 million in stock for 2013, almost double his award a year earlier. The New York-based firm hasn’t yet disclosed his cash bonus and long-term incentives.
David Darnell, Bank of America’s other chief operating officer, who manages retail banking and wealth management, got equity awards of $5.4 million, according to a separate filing. Chief Financial Officer Bruce Thompson, 49, got $6.7 million in stock units.
While Moynihan’s package didn’t include a cash bonus, other executives have received them in previous years. The bank bases the value of its equity awards on its average stock price during the 10 days before Feb. 15.