Bank of America’s Moynihan Got a Raise — Or Did He?
The picture doesn’t look good — headlines alleging that the CEO of a troubled bank, which is still working it’s way back from the brink following the crash that almost brought the banking industry down in 2008, is walking away with a 73 percent pay increase.
As it turns out, no, he did not receive a pay raise. Brian Moynihan, the CEO of Bank of America (NYSE:BAC), made $950,000 in 2012, the same as in 2011. However, he was offered 926,238 shares in BofA stock, and that’s what made his earnings look so inflated. As in 2011, he received no cash bonus.
Moynihan is set for a salary raise in 2013, from $950,000 to $1.5 million.
Bank of America’s performance was responsible for Moynihan’s well-endowed pay package. BofA shares grew by 60 percent in 2012, as Moynihan’s plan to cut costs in a time of low interest rates without issuing more stock played itself out — successfully, too, one might add.