Bank of America boosts CEO Moynihan’s Pay 25% to $20M

BANK OF AMERICA CORP. CEO BRIAN T. MOYNIHAN received a 25 percent pay raise in 2016, which followed a 23 percent raise in 2015.  / BLOOMBERG FILE PHOTO/ANDREW HARRER
BANK OF AMERICA CORP. CEO BRIAN T. MOYNIHAN received a 25 percent pay raise in 2016, which followed a 23 percent raise in 2015. / BLOOMBERG FILE PHOTO/ANDREW HARRER

NEW YORK – Bank of America Corp. awarded CEO 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, N.C.-based bank gave him a $16 million pay package, reflecting a raise of 23 percent. Moynihan hasn’t received a cash bonus since 2007.

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 didn’t achieve his long-term 60 percent efficiency ratio target in 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, an improvement from 69 percent in 2015. The firm also hasn’t achieved its 12 percent target for return on tangible common equity, which remained below 10 percent to end 2016.

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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.

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