Bank of America CEO Moynihan Salary Flat For 2011
NEW YORK — Bank of America Corp. is not giving its top executive a raise for 2011, unlike some rivals in the financial services industry. And top management will not receive cash bonuses after the nation's largest bank by assets saw its stock fall 11 percent for the year.
The Charlotte, N.C.-based bank said in a regulatory filing the base salary of CEO Brian Moynihan will remain $950,000 for 2011.
His pay package will also include $9.05 million in performance-based stock awards, to be granted Feb. 15. Those shares may eventually be converted into 40 percent cash and 60 percent stock, and earn dividends like regular shares.
Moynihan took over the helm of Bank of America on Jan. 1, 2010, replacing Ken Lewis. He earned a pay package valued at $6.03 million, including salary and stock awards, as head of the bank's consumer banking division in 2009, according to an Associated Press analysis of regulatory filings.
The absence of a salary increase stands in contrast to huge boosts announced earlier this month for the heads of Goldman Sachs Group Inc. and Citigroup Inc.
Goldman Sachs more than tripled the salary of CEO Lloyd Blankfein to $2 million, not including stock awards, and also granted raises to four other top executives. Citigroup Inc. gave its top executive, Vikram Pandit, a salary raise to $1.75 million, from just $1 the previous year.
Three other senior Bank of America executives are getting salary bumps of 6.25 percent, to $850,000 from $800,000, in addition to stock awards.
The filing with the Securities and Exchange Commission said Charles H. Noski, the chief financial officer, Joe Price, the president of consumer and small business banking and Thomas K. Montag, the president of global banking and markets, will all seeing their base pay rise.
The three executives each will also get two different types of stock awards. All three will receive $900,000 in cash settled stock units, which can be cashed in equal amounts for a 12-month period beginning in March. In addition, Noski and Price will receive $4.8 million in performance-based restricted stock units and Montag $14.3 million in restricted stock units.
Montag likewise received the bulk of his 2009 pay, valued at $29.9 million, in restricted stock. Bank of America last year said Montag's stock award was a "contractual commitment" made by Merrill Lynch, which hired Montag in April 2008 before the company was acquired by Bank of America.
Bank of America shares closed Monday trading up 13 cents at $13.73. The stock has changed hands between $10.91 and $19.86 in the past 52 weeks.