Bank of America Corporation’s (BAC - Free Report) Chief Executive Officer, Brian T. Moynihan receives a 15% hike in his total compensation for 2017. The company, on Friday, stated in a regulatory filing that its board of directors has approved Moynihan’s 2017 incentive plan.
Moynihan received a total compensation of $23 million for 2017, increasing from $20 million that he received in 2016.
Of the total compensation, $21.5 million is in the form of stock grants. This equity incentive marks an increase from $18.5 million paid in 2016.
The remaining $1.5 million is his annual salary, which remained unchanged. Also, he did not receive any cash bonus for the year.
Notably, of the total equity incentive that the company provides, half is performance-based restricted stock units (RSUs), which are paid only if the company meets certain financial goals. The remaining half is time-based RSUs and does not vary with the performance of the company.
Among others, JPMorgan Chase & Co. (JPM - Free Report) and Morgan Stanley (MS - Free Report) also increased their CEO’s compensation.
Notably, the compensation hike for BofA comes after the company delivered strong fourth-quarter as well as full-year 2017 results. Its results benefited from net interest income growth, primarily driven by higher rates and loan growth, along with improvement in investment banking fees.
The bank’s efforts to streamline and simplify operations are expected to support its overall growth. Also, gains from the new tax act will likely aid its financial performance, going forward.
Shares of the company gained 33.6% in 2017, outperforming 18.9% growth for the industry it belongs to.
Currently, BofA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock from the same space is Comerica Incorporated (CMA - Free Report) , which sports a Zacks Rank of 1. Its shares have gained 30.1% in the past six months and its Zacks Consensus Estimate for current-year earnings have been revised 5.9% upward over the last 30 days.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>