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Moynihan gets raise of 17% in 2013

  • The Bank of America (BAC +0.6%) board approved $14M for CEO Brian Moynihan, according a regulatory filing. Of that, $1.5M was his regular salary and $12.5M was stock grants, but there was no bonus despite a big move in the stock and profits that rose to $11.4B from $4.2B in 2012. The $1.5M salary will remain unchanged this year.
  • "They didn’t give him an outrageous raise,” says an executive search exec. “They’re also looking at how the outside world views this, and so they were relatively conservative.” Perhaps Moynihan should angle for the Chairman's slot. JPMorgan's Jamie Dimon - both CEO and Chairman of the Board - got a 74% raise for his 2013 efforts.
Comments (8)
  • jmjjmj1
    , contributor
    Comments (149) | Send Message
     
    says an executive search exec...whose pay directly corresponds with these packages. We are running out of ice cream get some before it melts say Ben and Jerry!
    20 Feb, 10:57 AM Reply Like
  • Bruce T1
    , contributor
    Comments (4) | Send Message
     
    This; in exchange for letting go thousands of employees, having to pay huge fines for unethical behavior, and less than stellar performance. Is this a clear sign of inequality in America? If you have to reduce force to maintain earnings; haven't you failed?
    20 Feb, 11:42 AM Reply Like
  • Bruce T1
    , contributor
    Comments (4) | Send Message
     
    This; in exchange for letting go thousands of employees, having to pay huge fines for unethical behavior, and less than stellar performance. Is t this a clear sign of inequality in America? If you have to reduce force to maintain earnings; haven't you failed?
    20 Feb, 11:48 AM Reply Like
  • Reim
    , contributor
    Comments (190) | Send Message
     
    You got to be kidding?
    20 Feb, 12:06 PM Reply Like
  • tullius
    , contributor
    Comments (54) | Send Message
     
    This is insane and obscene! I know dozens of people who lost their homes because telephone calls for help were never returned, requested, documented/receipted paperwork sent in were denied receipt by representatives, telephone extensions given incorrectly, BAC reps incorrect names given, representative names given who could never be found again. How can Moynihan's salary, plus this raise, be justified. The stock has laid in slumber-ville for years. Are we now suppose to yawn at this news. How about using some of the money to grant each person in loss of their homes a few thousands to buy them back again? Machiavellian at best and criminal at worst.
    20 Feb, 12:24 PM Reply Like
  • backazimuth
    , contributor
    Comments (2) | Send Message
     
    Just looking at the numbers, his pay, as a percentage of the profits, does not seem out of line although there are some exec pay packages that are positively nauseating. Moral issues are another matter as are pure business decisions. Try checking pay vs. profits for the execs of much smaller companies . . . for the record, I have not.

     

    Just a though ...
    20 Feb, 12:31 PM Reply Like
  • wward001
    , contributor
    Comments (8) | Send Message
     
    No CEO is worth more than $1,000,000.00 in salary! A real CEO would want his or her comp in stock! Board members $100,00.00 per year.
    20 Feb, 12:37 PM Reply Like
  • Albert Meyer
    , contributor
    Comments (351) | Send Message
     
    "No CEO is worth more than $1,000,000.00 in salary! A real CEO would want his or her comp in stock! Board members $100,00.00 per year."

     

    True, but the going rate for CEO's in the US who run large cap companies runs from about $8 million to $28 million a year. Those who bought BAC stock two years ago, when the CEO's comp was about $3 million (pretty generous of Moynihan seeing his predecessor raked in more than $20 million a year), are now looking at returns of anywhere from 40% to 100%. It was very important for Moynihan to manage the bank's many litigation and regulatory issues properly, I think he did a good job. He seems the real deal to me. I don't begrudge him his salary, still about half of what the CEOs at Wells Fargo and JP Morgan earn. That said, shareholders would be much better off if US corporations adopt Norwegian style corporate government practices and compensation packages.

     

    In England, a barely literate and impetuous soccer player earns 300,000 pounds a week ($498,000), that its, $25.9 million a year. On odd occasions he scores a goal or two, with the help of nine other players (goalie excluded). Don't blame him. He is just taking what the market gives him.

     

    It is somehow easier and more palatable to give a CEO $14 million in stock awards (options and restricted stock) than to actual pay cash of $14 million. As as shareholder I prefer cash, but the tax code disallows as a tax deduction cash compensation in excess of one million dollars. Hence, stock awards are tax efficient, but dilutive to shareholders.
    20 Feb, 03:21 PM Reply Like
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