Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Bank of America CEO's pay rises more than 30% for 2021

Published 02/04/2022, 04:54 PM
Updated 02/04/2022, 05:16 PM
© Reuters. FILE PHOTO: CEO and Chairman of the Bank of America Brian Moynihan speaks during the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain, November 2, 2021. REUTERS/Hannah McKay/Pool

NEW YORK (Reuters) -Bank of America Corp Chief Executive Brian Moynihan's total compensation for 2021 rose by $7.5 million, or more than 30%, a regulatory filing showed on Friday.

Moynihan will receive $32 million for his work during the year, compared with $24.5 million in 2020, the first year of the pandemic when he and two other big bank chiefs received pay https://reut.rs/374CaN1 cuts.

The boards of other big U.S. banks have also rewarded their chief executive officers richly this year, as annual profits at banks bounced back last year on record-breaking M&A volumes, trading activity and the economic recovery.

Bank of Amercia Corp's profits https://www.reuters.com/markets/europe/bank-america-profit-beats-estimates-loan-growth-ma-boost-2022-01-19 rose nearly 30% to $6.77 billion in the fourth quarter of 2021 compared to the year ago period. Revenue, net of interest expense, rose 10% to $22.1 billion.

Moynihan will receive a base salary of $1.5 million with the remainder of his pay package comprised of an equity incentive award worth $30.5 million, according to the filing.

Bank of America (NYSE:BAC)'s board said its decision to raise Moynihan's pay was based on the fact that the bank's net income soared to a record of $32 billion last year and its stock price rose 47%.

In comparison, JPMorgan Chase & Co (NYSE:JPM) head Jamie Dimon https://www.reuters.com/business/jpmorgan-board-lifts-ceo-dimons-pay-345-million-2022-01-20 will receive $34.5 million for 2021, while both the CEOs of Morgan Stanley (NYSE:MS) https://www.reuters.com/article/morgan-stanley-ceo-compensation-idCNL4N2U13ND and Goldman Sachs (NYSE:GS) https://www.reuters.com/article/goldman-sachs-solomon-compensation-idCNL4N2U84J7 Group Inc will receive $35 million.

Latest comments

The rich get richer
Well, at this point they can certainly afford it. Later, well time will tell.
Just like after the 2008 financial crisis, the banks are the first to benefit from the Feds money printing and governments increased supply of debt.  It is also one more example of the increasing wealth gap, another result of the Feds money printing; or inflation.
No one is worth that compensation. We need to reduce the top and increase the lower level employees pay and benefits instead. A CEO should only be allowed to be paid the maximum of 50 times their lowest compensated employee. Most won't see this kind of compensation for an entire career.
Reducing his pay to give to the lowest paid employees would only amount to pennies.  At the end of the day it's up to shareholders, through the board of directors, to determine his pay level.  Any other method opens up everyone's pay to criticism by those making less, including yours and mine...effectively resulting in communism.
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.