BOA CEO Moynihan Awarded With The Second Largest Pay Package After JP Morgan’s James Dimon

February 13
10:15 PM 2016

Brian T. Moynihan, chairman and CEO of Bank of America Corp. (BOA) has been rewarded with a pay package worth $16 million for the year 2015. The 23% hiked pay package has appeared as recognition for his contributions to the second largest bank in the US by assets during last year.

Moynihan has received $14.5 million in stock grants for 2015 while his salary remains unchanged at $1.5 million. He has received a $13 million pay package from the Charlotte, North Carolina based bank, a year earlier, reports Bloomberg quoting a regulatory filing of the bank on Friday.

However, Moynihan hasn't received a cash bonus for the years 2015 and 2014. The CEO has won a proxy battle over retaining chairman title in addition to his CEO role which ended in voting by the shareholders during last fall. 63% shareholder voters have opined in favor of him for holding both the title, according to a report published in the Business Insider.

The bank has reported its biggest annual profit during 2015, within nearly a decade. The profit earning has probably put an end to its crisis era riddled leaving behind legal and regulatory headaches. Meanwhile, fall in annual revenue has drawn questions over Moynihan's ability to run while keeping to cutting costs, reports The Wall Street Journal.

The board has cut Moynihan's pay to $13 million from $14 million in 2014 due to payment of fine to the Justice Department over allegations centering mortgage securities. However, the board has promoted him to chairman during the same year.

Meanwhile, JP Morgan Chase & Co. CEO James Dimon's pay package of $27 million during 2015 has surpassed that of Moynihan. Goldman Sachs Group Inc. and Morgan Stanley have cut their CEO's annual payment for 2015 by 35%. The cut in pay package reflects a prevailing tough situation for bond trading business in the Wall Street.

The pay package of Mr. Moynihan is subjected to hitting goals for return on assets, profitability metric and growth in adjusted tangible book value. Earning 0.80% average return on assets by the BOA over the next three years will enable the CEO to receive the maximum payout. In 2015, BOA has recorded 0.74% return on assets.

Pay packages of the CEOs in the Wall Street businesses are being cut due existing volatile market situations. Board of directors for BOA has cut pay package of its CEO Moynihan from $14 million to $13 million following mortgage security scam in 2014. However, the bank has awarded its CEO with the second highest pay package of $16 billion during 2015 while the highest received by JP Morgan CEO James Dimon.  

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