BoA CEO Brian Moynihan huge salary just got a lot bigger.
It’s good to be the chief executive officer of Bank of America — which means it’s good to be Brian Moynihan.
Moynihan has been CEO of the second largest bank in the United States since 2010, and now he’s getting his biggest pay raise ever: $3 million, a 23 percent increase from his income the previous year when he earned a mere $13 million, according to a Dow Jones Business News report.
Most of that pay raise will come in the form of restricted stock. The company revealed the details of the raise in a regulatory filing this past week.
In actual salary figures, he received $1.5 million this year, the same as last year. His restricted stock payout amounts to $14.5 million. There will be no cash bonus.
Moynihan certainly seems deserving of the raise, as under his leadership Bank of America posted its biggest annual profit in many years last year.
But much of that is because the bank had been successful in cutting costs to juice up the bottom line. Annual revenues have been falling, and some question whether it’s only a matter of time before those big profits start to dry up as the bank runs out of ways to cut costs.
The pay increase comes two years after Moynihan had his pay cut by the board from $14 million to $13 million after the bank paid a massive find to the Justice Department due to mortgage securities allegations, according to the report.
Although banks have certainly been doing a lot better since the 2008 financial crisis and subsequent recession, bank stocks have been dropping so far this year over concerns about low interest rates and the global economy. Bank of America has been particularly hard hit, falling 29 percent for the year.