Summary
Bank of America Corporation (BAC) filed an 8-K on February 3, 2023, to announce the compensation for its Chair and CEO, Brian T. Moynihan, for the year 2022. Mr. Moynihan's total compensation was set at $30 million, a decrease from the $32 million awarded in 2021. This decision by the Board of Directors reflects an evaluation of the company's "Responsible Growth" performance throughout 2022, considering financial results, shareholder returns, and support for clients, communities, and employees. The report details strong financial performance, with net income reaching $27.5 billion, marking the third-highest in the company's history. Revenue grew 7% year-over-year, outpacing expense growth. The company returned $12 billion to shareholders through dividends and buybacks. Despite a 26% decline in its stock price, consistent with industry trends, BAC highlighted its robust balance sheet with over $273 billion in shareholders' equity and $881 billion in liquidity.
Key Highlights
- 1CEO Brian T. Moynihan's 2022 total compensation was set at $30 million, a decrease from $32 million in 2021.
- 2Bank of America reported a net income of $27.5 billion in 2022, its third-highest performance historically.
- 3Revenue increased by 7% in 2022, with operating leverage improving by 400 basis points.
- 4The company returned $12 billion to shareholders via dividends and stock repurchases in 2022.
- 5BAC strengthened its balance sheet with over $273 billion in shareholder equity and $881 billion in liquidity at year-end 2022.
- 6Employee compensation and benefits were enhanced, including raising the minimum wage to $22/hour and introducing a new sabbatical program.
- 7CEO equity compensation is structured with 50% in performance-based RSUs tied to a three-year re-earn period and subject to clawback policies.