Bank of America boosts CEO Moynihan’s pay 25% to $20 million
Brian Moynihan is on the verge of turning the once-crippled Bank of America into one of the nation”s most profitable companies.
Bank of America Corp. awarded Chief Executive Officer Brian T. Moynihan $20 million for his work last year, raising his compensation 25 percent.
Moynihan received $18.5 million in stock grants for 2016, and the board left his salary unchanged at $1.5 million, according to a regulatory filing Friday. A year earlier, the Charlotte, North Carolina-based bank gave him a $16 million pay package, reflecting a raise of 23 percent.
Moynihan, 57, has worked to boost the lender’s profitability through cost reductions and by resolving litigation issues left over from the financial crisis. He increased profit by 13 percent to $17.9 billion in 2016, and said in April he’d cap expenses at $53 billion by the end of 2018, a $2 billion drop from last year.
Despite dialing back costs, Moynihan couldn’t achieve his 60 percent efficiency ratio target for 2016. Bank of America, the second largest U.S. lender, ended the year with a 65 percent ratio of non-interest expense to net income, compared with 69 percent in 2015. The leader also hasn’t achieved its 12 percent target for return on tangible common equity, which remained below 10 percent to end 2016.
Bank of America shares climbed 31 percent in 2016, the most among the largest U.S. deposit-taking lenders. The surge was due largely to a fourth-quarter rally in financial stocks fueled by investor expectations that Donald Trump’s election would result in less regulation and lower taxes.