Financial institution of America CEO Brian Moynihan is slowing down hiring and taking a pay reduce however he is nonetheless making $30 million
Financial institution of America Corp. Chief Govt Officer Brian Moynihan’s whole compensation declined 6.3% to $30 million for his work in 2022, a yr wherein revenue tumbled and the shares sank.
The board granted Moynihan $1.5 million in wage and $28.5 million in stock-based incentive awards, the Charlotte, North Carolina-based lender mentioned Friday in a submitting. A yr in the past, Moynihan’s compensation was boosted 31% to $32 million because the agency set a report for profitability.
The pay package deal follows an industrywide concentrate on compensation and different bills amid a droop in dealmaking and concern in regards to the impression a possible recession would have on Wall Road income.
Financial institution of America is searching for to reward its greatest staff whereas preserving a lid on prices. The agency has already been compelled to reduce on hiring plans, even because it added headcount within the fourth quarter. Web earnings in 2022 fell to $27.5 billion from a report $32 billion a yr earlier.
This yr, the agency is awarding a pool of restricted inventory to staff who earn as much as $500,000 to retain staff. It’s the sixth yr the financial institution has paid such awards, which now whole greater than $4 billion.
The financial institution’s shares plunged nearly 26% in 2022. The inventory has rebounded about 10% since then, to $36.43 on the shut of standard buying and selling in New York Friday.
Moynihan, 63, was promoted to CEO in 2010 within the wake of the worldwide monetary disaster, and has steered the lender by the pandemic. He has signaled his curiosity in staying on for years to come back.
Different US finance firms have turned to layoffs, with executives touting the necessity to reduce prices in a difficult financial setting. That’s brought on some financial institution leaders to take a success to their pay.
Goldman Sachs Group Inc. CEO David Solomon’s compensation for 2022 fell 30% to $25 million, whereas Morgan Stanley’s James Gorman bought a ten% pay reduce to $31.5 million. In distinction, JPMorgan Chase & Co. held Jamie Dimon’s pay regular at $34.5 million.
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