* CEO's pay increases to $12.1 million from $7 million on
bigger stock grants
* 2013 salary will increase to $1.5 million from $950,000
* Some of stock grants are performance-based
By Rick Rothacker
Feb 19 Bank of America Corp Chief
Executive Brian Moynihan's pay increased 73 percent in 2012 from
the previous year to $12.1 million, as the bank gave him a
bigger package of stock awards.
The second-largest U.S. bank gave Moynihan a raise when
other CEOs on Wall Street received a pay cut, after Bank of
America's stock soared in 2012 and it made progress in resolving
lawsuits from the financial crisis.
Moynihan received 926,238 shares of stock in three types of
grants, including restricted shares and performance-based
shares, according to a regulatory filing on Tuesday.
Moynihan earned a $950,000 salary in 2012, but received no
cash bonus, similar to 2011, a person familiar with the
situation said. The CEO's 2013 salary will increase to $1.5
million, the person said.
The stock grants for 2012 were worth $11.1 million at the
closing price of $12.03 on Friday, the date they were awarded.
Moynihan received grants worth about $6.1 million for 2011.
Bank of America's shares rose 109 percent in 2012, the best
performance among stocks in the Dow Jones Industrial Average, as
investors grew confident it had the capital it needed to meet
new international guidelines.
Moynihan, however, is still wrestling with losses from the
bank's 2008 Countrywide Financial acquisition and is under
pressure to show the bank can increase earnings at a time of low
interest rates and tighter regulations.
MORE THAN DIMON
His pay rose in a year in which other bank executives were
not so fortunate. Morgan Stanley CEO James Gorman's total
pay for 2012 fell 7 percent to $9.75 million, while JPMorgan
Chase & Co awarded CEO Jamie Dimon $11.5 million after
slashing his bonus in half after the bank lost billions on
disastrous trades by its Chief Investment Office.
Moynihan made more than Dimon, even though his bank posted
net income of $4.2 billion in 2012, compared to $21.3 billion
Bank of America's filings disclose only the stock portion of
pay for Moynihan and other top executives in 2012. More details
will be provided in the annual proxy filing this spring.
Moynihan's grants included 277,871 shares that will be paid
out on a monthly basis in cash over the next year and 463,119
restricted shares that vest over three years. The remaining
185,248 performance-based shares will vest if the company meets
return on asset goals for half the shares and growth in adjusted
tangible book value goals for the other half over a three-year
The 2012 performance-based shares differ from previous
grants, potentially giving executives another chance to make
them pay off.
In 2011, the bank granted performance-based shares tied only
to return on assets, a measure of profits compared to total
assets. The bank needed to reach a minimum return on assets of
0.5 percent over a four-quarter period by the end of 2015 to pay
out at least partially. The bank's return on assets in 2012 was
0.19 percent, up from 0.06 percent in 2011.
The bank's tangible book value per share of common stock
grew to $13.36 in the fourth quarter of 2012 from $12.95 a year
earlier as the bank built capital. Tuesday's filings did not
disclose the performance-based goals for the shares.