Bank of America Corporation (BAC, Financial) has announced that its Board of Directors approved a total compensation package of $35 million for Chair and Chief Executive Officer Brian T. Moynihan for 2024. This marks an increase from his 2023 compensation of $29 million, reflecting the company's successful year under his leadership.
The Board's decision was influenced by Bank of America's continued success in delivering Responsible Growth throughout 2024. The company reported a net income of $27.1 billion, a 2% increase from the previous year, and saw its share price rise by 30%. This performance was driven by strong organic growth across all business segments, including a notable mid-year recovery in net interest income and robust growth in fee-based businesses.
Bank of America's market capitalization increased by nearly $70 billion from December 31, 2023, to December 31, 2024, as a result of its improved stock price. The company also returned $21 billion to shareholders through dividends and stock repurchases, a 75% increase from 2023.
In 2024, the company experienced $42 billion in loan growth, bringing total loans to over $1.095 trillion by year-end. The Consumer and Wealth Management division managed $6 trillion in balances, with approximately $66 billion in net wealth flows. The company also added a record one million net new consumer checking accounts and 24,000 new Wealth Management relationships.
Bank of America continued to invest in its workforce, maintaining a stable turnover rate of 8% and raising the minimum hourly wage for U.S. employees to $24, with a commitment to reach $25 by 2025. The company also awarded approximately 97% of its employees with Sharing Success awards, primarily in company stock, to align employee interests with those of shareholders.
Mr. Moynihan's compensation structure remains consistent with previous years, comprising a base salary of $1.5 million and an equity incentive valued at $33.5 million. The equity incentive includes time-based and performance-based restricted stock units (RSUs), with no cash bonus. These incentives are subject to the company's stock ownership, retention requirements, and cancellation and clawback policies.
Bank of America's strong financial performance and strategic initiatives in 2024 underscore its commitment to growth and shareholder value, positioning the company for continued success in the coming years.
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