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BofA (BAC) CEO Moynihan's 2019 Compensation Remains Stable

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Bank of America’s (BAC - Free Report) chief executive officer Brian T. Moynihan’s total compensation for 2019 remained flat with the prior-year level, after the bank reported a 2.5% fall in net income. In a regulatory filing, the company stated that the board of directors has approved his 2019 compensation.

Moynihan received a total compensation of $26.5 million for 2019, in line with 2018 but up from 2017’s $23 million.

Of the total compensation, $25 million is in the form of stock grants. This equity incentive is in line with the amount paid in 2018.

The remaining $1.5 million is his annual salary, unchanged from the previous year. Notably, he hasn’t received cash bonus since 2007, although a portion of his stock award will be settled in cash when it vests.

Further, of the total equity incentive that BofA provides, half is performance-based restricted stock units (RSUs), which are paid only if the company meets certain financial goals (including growth in book value and return on assets) over a three-year period. The remaining half is time-based RSUs and does not vary with the company’s performance.

Notably, the compensation was kept unchanged after BofA delivered decent 2019 results with lower profitability in the company’s investment bank and trading divisions. Its results were adversely impacted by reduction in interest rates and higher expenses.

Shares of BofA appreciated 42.9% in 2019 compared with 35.3% growth registered by the industry. Several favorable macroeconomic factors, including improving economy and a decent rise in client activity, along with strong fundamentals and consistent profitability with decent loan growth, were the main reasons for the share-price escalation.



Currently, BofA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Wall Street biggies that have announced compensations for CEOs include JPMorgan (JPM - Free Report) with a hike of 1.6%, while Morgan Stanley (MS - Free Report) announced a 7% reduction. Other big banks — Citigroup (C - Free Report) and Wells Fargo — have not yet revealed the latest compensations.

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