Bank of America Corp. cut Chief Executive Officer Brian T. Moynihan’s compensation for 2011, granting him no cash bonus and freezing his salary, said a person briefed on the executive’s awards.
The bank is holding Moynihan’s salary at $950,000, said the person, who spoke on condition of anonymity because the Charlotte, North Carolina-based bank hasn’t yet announced his pay package. It gave him $5.9 million in restricted stock units, mostly linked to future performance, the firm said yesterday in a filing. For 2010, the grant had surpassed $9 million.
Bank of America, the second-biggest U.S. lender, plunged 58 percent in New York trading last year as Moynihan sold $33 billion in assets and announced 30,000 job cuts amid stagnant revenue and rising costs from defective mortgages. The stock has climbed 44 percent this year, the best performance in the 30- company Dow Jones Industrial Average (INDU), on optimism that the firm will benefit as the U.S. economy improves.
“They’re setting an example from the top, saying, ‘You know what? If the company doesn’t do well, our CEO isn’t going to do as well,’” said Jeanne Branthover, a managing director at Boyden Global Executive Search Ltd. in New York. “Yes, these guys make a lot of money, but they have to wait it out with their deferred equity, like everyone else.”
The bank had agreed to award Moynihan, 52, a $9.05 million restricted-stock bonus last February, according to a regulatory filing the previous month. This year, it gave him 228,302 in stock units that pay out in 12 monthly installments and 532,705 in performance-contingent units that he may receive as early as March 2015 if performance hurdles are met, according to yesterday’s filing. The value is based on the stock’s closing price on the award date, Feb. 15.
2011 Profit
Bank of America posted net income of $1.4 billion for 2011, fueled by the divestiture of holdings including a Chinese lender, compared with a $2.2 billion loss the previous year when the firm booked $12.4 billion in impairments.
Co-chief operating officer Thomas K. Montag was awarded stock units totaling $8.1 million, most of which are performance linked awards, according to a filing. David Darnell, the other COO, got stock units valued at $4.2 million. Chief Financial Officer Bruce Thompson’s stock award is valued at $6.2 million.
16 comments:
I think his house staff and the captain of his yacht will be getting laid off or their salary cuts. It's called the trickle down theory. The Boss doesn't get million dollar bonus and the butler gets the axe.
A friend has been trying to get a mortgage from BOFA and Wells Fargo for some time and (to me) it seems that they have been stalling these people big time. They have fantastic credit. They own other properties OUTRIGHT. The builder they are working with said he will NEVER do business with BOFA or Wells again.
I think it is telling that companies are becoming so desperate as are charities. Shriner's called today as did 2 credit company calls saying 'You've contacted us." That's straight out lying.
I am NOT nice answering the phone any more. In fact, if I don't recognize the number, I don't answer. Only reason I answered was because daughter was flying home.
Not to defend the banksters, but our First Lady is off skiing again. It's hard (IMO) to preach about how 'concerned' you are about the 99% when you are on vacation all the time.
I give no credence any more in politicians or 'spokesmen/women' of few causes of any ilk. When they LIVE like the 99% while preaching their cause, I just might pay attention. Until then, I predict a LONG HOT summer with gas prices rising, hacks screaming from every corner of your tv, and those of us simply trying to eek out a living squeezed from all sides.
We have to, however, keep in mind that we must live in charity, look for charity, and bathe ourselves in what little light we can find to ward away the darkness. We must live in hope for in that way is survival. Set aside time to do what feeds your soul...listen to music; garden; take a walk; talk with friends; hug a child; cook a favorite dish; read a book, paint a picture. Step away from the net, the news, etc.
CL you are missing the day long tribute to Whitney Houston on one of the cable stations. ;-) Just kidding.
Imagine how much it cost the US taxpayers to fund a trip like that for Mrs POTUS?
I could probably live the rest of my life just on the security costs alone. Did she take AF1 or ride on Greyhound?
You don't need me to comment again on Bank of America. I curse there very existence as the cheated their retired on the promise of life long pensions with COLAs and health benefits. What Nations Bank. The evil psychopath that ran Nations Bank was Ken Lewis so if you ever see him kick him in the shins for me.
The employees hated him with a passion. http://en.wikipedia.org/wiki/Ken_Lewis_(executive)
Damn did Michelle just get back from Hawaii? She sure represents the poor and downtrodden. What a joke that presidency has been.
I don't remember ever having a 17 day vacation. Especially in Hawaii
The high price of impatience: Michelle jets off to Hawaii with the kids for 17 day vacation before the President can leave ... at a cost of $100,000 to the taxpayer
Now this must have been what Hopey meant by us all having skin in the game. Maybe he meant skiing.
Luxury: The family will travel by Air Force One, pictured, which costs $180,000 per hour - or around $1,000,000 for a return trip from Washington to Hawaii.
Bee/CL
Be careful of what you say about the lovely Michelle. Remember the National Defence Authorization Act allows her other half to fly a drone over your house and fire a rocket through your kitchen window if you say something out of line.
Now you know what life was like in the UK with the equally money grubbing vermin Tony and Cherie.
WMW when free speech on opinion are met with drones and bombs then we truly are a lost civilization. Even though I poke fun at politicians the job comes with perks as do most executive positions. I just think the President and First Lady are hypocrites, saying one thing and doing another. Look at how many vacation days Bush II amassed in his first year in office.
"We have to, however, keep in mind that we must live in charity, look for charity, and bathe ourselves in what little light we can find to ward away the darkness. We must live in hope for in that way is survival. Set aside time to do what feeds your soul...listen to music; garden; take a walk; talk with friends; hug a child; cook a favorite dish; read a book, paint a picture."
Bless your kind heart cl!
That would make a great poster or greeting card.
I think the "call display" feature is the greatest advance in telephone technology ever.
When you see 1-800-BLAH-BLAH come up, you know it is some telemarketer. A few of them will use the "private caller" trick, which I ignore too.
If it is somebody I want to talk to, they will leave a message on my answering machine. I only pick up if I recognize the number.
Every day I come home from work, and I see "5 missed calls" or so, but no messages - my Panasonic phone doesn't record a "message" if they don't say anything, which the robo-calling telemarketers never do.
We have a useless "Do Not Call Registry" here with does not work, they keep calling. Some of the wacky area codes that come up from telemarketers I have never seen - Vietnam or India maybe.
Michelle and Obana take what, 4 or 6 vacations a year?
17 days in Hawaii indeed.
Apparently the "Hope & Change" is about hoping for more and longer hollidays, and the change is about picking different holiday destinations. Wouldn't want to go to the same 5 star place too often, you know.
mugabe has a good point about owning "income property", but there are also many pitfalls in that business.
He is correct about the "prime location" being better, but it would also be veeery expensive to buy. And the real estate market, like any other does go in cycles, if you buy near the top you probably won't be able to charge enough rent to pay that expensive mortgage.
But now may be the time to consider it, in areas that have seen significant declines in real estate prices. Provided there are some jobs and the local economy is not too bad - tenants have to be able to pay the rent.
Considering the economic times, owning lower rent units would probably be preferabel over "luxury", in most areas.
Maybe not Zurich, but you need to be already rich to buy there.
And the other consideration is that you probably have to live nearby, hard to be a landlord from a vast distance. You can hire a proerty manager, but they aren't cheap, the ca$h flow may not support it.
Still, it is a steady basic business - people have to live somewhere, and these days there are a lot more looking to rent.
mugabe - the link you want is:
http://evilspeculator.com/
Honestly, for $40 a month, they will give you ForEx, options and futures trades that will make money. For what amounts to a pittance, cost wise. You already have an IB account, nothing more reequired.
Most of their trades seem to have a duration of a few days to a couple weeks, it's not really day-trading, but short term.
Try it for a month, just read it, don't take any trades, get familiar with it, spend time in the subscribers comments asking questions and watching what others are doing. Then start with small position sizes, and of course always use stops, to get some experience.
If it doesn't make you a beter trader, and make some money, hell, I'll refund you your $40 if you honestly feel it wasn't worth it.
I'd be doing it now, but for the job I have which limits my trading hours and market access. But I won't be working there forever, about 2-3 more months probably, then I will go Evil myself.
CL sorry I didn't allude to your beautiful ending of the comment thank GAW for reminding me. I am going to try subscribing to Evil and let you know what I think. I cannot just let all this money sit in the checking account. If I do I will just spend it all on precious metals and I have surpassed what I was trying to accumulate in gold. I will pick up a little more silver monthly, but I need other money to work for me not just sit.
Being a landlord is fraught with issues and we have a house at the end of my street that turns over tenants every 6 months. You should see all the trash the owner has to haul out to the street each time. This is a nice old neighbourhood, but the end houses abut to a heavily travelled 4 lane road. I think it can also take up to four months to evict someone.
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