8-KOther Events

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Feb 7, 2025)

Filed February 7, 2025For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

Bank of America Corporation announced the 2024 total compensation for its Chair and CEO, Brian T. Moynihan, has been approved at $35 million, an increase from $29 million in 2023. This decision by the Board of Directors reflects the company's "Responsible Growth" achievements in 2024, including a 30% increase in share price and $27.1 billion in net income. The compensation is structured entirely as equity incentives, with no cash bonus, comprising time-based and performance-based restricted stock units, subject to stock ownership and clawback policies. The company highlighted strong financial and operational performance in 2024. Key drivers included a 3% revenue growth to nearly $102 billion, stable credit costs, and significant organic loan and deposit growth outpacing industry averages. Bank of America also returned $21 billion to shareholders through dividends and repurchases, a 75% increase from the prior year, and expanded its investment in technology and talent. Client growth was robust, with one million net new consumer checking accounts and record sales and trading revenue in Global Markets.

Key Highlights

  • 1CEO Brian T. Moynihan's total compensation for 2024 was set at $35 million, up from $29 million in 2023.
  • 2The Board cited "Responsible Growth" and strong company performance, including a 30% share price increase and $27.1 billion net income, as reasons for the compensation decision.
  • 3Compensation is 100% equity-based, with no cash bonus, and includes time-based and performance-based Restricted Stock Units (RSUs).
  • 4Bank of America reported 3% revenue growth in 2024, reaching nearly $102 billion, and a 2% increase in net income to $27.1 billion.
  • 5The company returned $21 billion to shareholders in 2024 via dividends and stock repurchases, a 75% increase year-over-year.
  • 6Organic loan and deposit growth exceeded industry averages, and client balances across Consumer and Wealth Management reached $6.0 trillion.
  • 7Investments were made in technology, retail footprint expansion, and employee compensation, with a continued commitment to increasing minimum hourly wages.

Frequently Asked Questions

The increase in CEO Brian T. Moynihan's total compensation for 2024 to $35 million from $29 million in 2023 is attributed by the Board to the company's "Responsible Growth" strategy and its strong financial performance in 2024. This includes a significant increase in share price, robust net income, and strong organic growth across various business segments.

Mr. Moynihan's compensation is entirely composed of equity incentives, with no cash bonus. It consists of time-based and performance-based Restricted Stock Units (RSUs). All equity awards are subject to the company's stock ownership and retention requirements, as well as its cancellation and clawback policies, ensuring alignment with shareholder interests and corporate governance standards.

In 2024, Bank of America achieved $27.1 billion in net income and nearly $102 billion in revenue, marking 3% growth. The company's share price increased by 30%, and it returned $21 billion to shareholders, a 75% increase from 2023. Additionally, organic loan and deposit growth outpaced industry averages, and Global Markets achieved record sales and trading revenue.

Yes, Bank of America continued to invest in its employees and operations. This included raising the minimum hourly wage for U.S. teammates, distributing "Sharing Success" awards (largely in company stock), expanding its retail footprint, and increasing spending on technology and new initiatives to drive future growth in its banking and wealth management businesses.