CHARLOTTE, North Carolina (Reuters) - Bank of America Corp’s (BAC.N) chief executive received a 70 percent pay cut in 2010, mainly because the bank shifted its schedule for paying bonuses.
Instead of getting his 2010 bonus at the end of last year, Moynihan received it in early 2011.
Chief Executive Brian Moynihan, in his first full year as CEO, had his total compensation paid in 2010 decline 70 percent to $1.94 million from $6.51 million a year earlier.
But most of Moynihan’s bonus was instead paid in early 2011, when Bank of America awarded him $9.1 million in performance restricted stock units.
The units vest annually based on the company’s total return on assets, ending in 2015.
Other senior executives saw similar declines in pay, for similar reasons.
Investment bank chief Thomas Montag — whose 2009 compensation was $29.9 million thanks to a $29 million stock award related to the Merrill Lynch buyout — received 2010 compensation of $831,248.
Total compensation for Joe Price, head of BofA’s consumer bank operations, declined to $917,027 from $6.1 million a year prior.
The bank posted a $2.2 billion loss in 2010, driven primarily by mortgage-related losses and billions in writedowns of the value of its credit card and mortgage businesses.
Under SEC rules, pay awarded only in the 2010 calendar year can be included in that year’s compensation.
Executives can receive all of their incentive awards, should the bank post a return on assets greater than 0.8 percent. The bank can take the awards back if the company does not perform well enough, or executives engage in improper conduct.
The units are comprised of 40 percent cash and 60 percent stock.
The stock does not vest until March 1, 2014.
Reporting by Joe Rauch; editing by Gerald E. McCormick and Andre Grenon