BofA CEO's Pay Held Steady Even as Stock Price Surged -- WSJ
08 Februar 2020 - 09:02AM
Dow Jones News
By Ben Eisen
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (February 8, 2020).
Bank of America Corp. greenlighted a $26.5 million pay package
for its top executive in 2019 after the bank's shares marked their
best run in years.
Brian Moynihan is set to receive compensation that matches the
preceding year's package. His pay includes a $1.5 million base
salary and $25 million worth of restricted stock, the bank said in
a regulatory filing Friday.
His 2019 earnings put him slightly below other Wall Street
chiefs like JPMorgan Chase & Co.'s James Dimon, who made $31.5
million, and Morgan Stanley's James Gorman, who made $27
million.
In 2018, Mr. Moynihan was the 10th highest-paid among the 75
CEOs in the S&P 500 financial sector, according to a Wall
Street Journal analysis of pay data from MyLogIQ LLC.
Mr. Moynihan is now a decade into his tenure as CEO. For years,
his pay lagged behind that of rivals as Bank of America struggled
to rebound from the financial crisis and paid heavy fines to
resolve issues from that era. But Mr. Moynihan eventually refocused
the Charlotte, N.C.-based bank on its core consumer businesses.
The bank reported net income of $27.4 billion in 2019, down from
2018. When excluding a one-time charge, however, profit rose to a
record $29.1 billion.
Bank of America's stock jumped more than 40% in 2019, its
biggest annual rise since 2012, amid a broader rally in bank
stocks. One reason for the move: Bank of America returned a record
$34 billion to shareholders through stock repurchases and
dividends. In the third quarter of last year, no S&P 500
company besides Apple Inc. bought back more of its stock, according
to S&P Dow Jones Indices.
Buybacks can boost stock prices by pulling shares out of the
market, making per-share profit look better even in the absence of
earnings growth. Still, the stock remains more than a third lower
than its precrisis peak in 2006.
As in previous years, much of Mr. Moynihan's stock-based
compensation is tied to the bank's performance. To unlock the
compensation, the bank must meet certain performance targets over
the next few years.
--Theo Francis contributed to this article.
Write to Ben Eisen at ben.eisen@wsj.com
(END) Dow Jones Newswires
February 08, 2020 02:47 ET (07:47 GMT)
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