Bank of America Corp chief executive officer Brian Moynihan
NEW YORK: Bank of America Corp chief executive officer Brian Moynihan’s total compensation declined 6.3% to US$30mil (RM128mil) for his work in 2022, a year in which profit tumbled and the shares sank.
The board granted Moynihan US$1.5mil (RM6.4mil) in salary and US$28.5mil (RM121mil) in stock-based incentive awards, the Charlotte, North Carolina-based lender said in a filing.
A year ago, Moynihan’s compensation was boosted 31% to US$32mil (RM136mil) as the firm set a record for profitability.
The pay package follows an industry-wide focus on compensation and other expenses amid a slump in dealmaking and concern about the impact a potential recession would have on Wall Street revenue.
Bank of America is seeking to reward its best employees while keeping a lid on costs.
The firm has already been forced to scale back on hiring plans, even as it added headcount in the fourth quarter.
Net income in 2022 fell to US$27.5bil (RM117bil) from a record US$32bil (RM136bil) a year earlier.
This year, the firm is awarding a pool of restricted stock to employees who earn up to US$500,000 (RM2.1mil) to retain workers.
It is the sixth year the bank has paid such awards, which now total more than US$4bil (RM17bil)
The bank’s shares plunged almost 26% in 2022.
The stock has rebounded about 10% since then, to US$36.43 (RM155) at the close of regular trading in New York on Friday.
Moynihan, 63, was promoted to CEO in 2010 in the wake of the global financial crisis, and has steered the lender through the pandemic. He has signalled his interest in staying on for years to come.
Other US finance companies have turned to layoffs, with executives touting the need to cut costs in a challenging economic environment. That’s caused some bank leaders to take a hit to their pay.
Goldman Sachs Group Inc CEO David Solomon’s compensation for 2022 fell 30% to US$25mil (RM106mil), while Morgan Stanley’s James Gorman got a 10% pay cut to US$31.5mil (RM134mil). In contrast, JPMorgan Chase & Co held Jamie Dimon’s pay steady at US$34.5mil (RM147mil). — Bloomberg
