Bank of America Proxy Shows CEO Made 250 Times More Than Median Employee
March 12 2018 - 7:18PM
Dow Jones News
By Rachel Louise Ensign
Bank of America Corp. on Monday became the first big U.S. bank
to unveil how much more its CEO makes than its typical
employee.
The lender said in its annual proxy filing that in 2017 Chief
Executive Brian Moynihan earned 250 times as much as the median
bank employee. The disclosure is one that other big banks and
companies are planning to make for the first time.
This year, U.S. publicly traded firms are required for the first
time to divulge their median employee pay in addition to CEO pay,
and the ratio between the two.
Mr. Moynihan earned $23 million for 2017, a year in which the
bank hit new profit milestones and finally put its crisis-era
issues behind it. The methodology used in the ratio uses a slightly
different pay figure for Mr. Moynihan. By comparison, the median
Bank of America employee had total compensation of $87,115 for the
year.
With more than 200,000 employees ranging from investment bankers
to tellers, pay at Bank of America varies widely. Capital One
Financial Corp., for instance, had a similar ratio, with its chief
executive earning 261 times the median employee.
The employee-pay disclosure was mandated by the 2010 Dodd-Frank
Act in the wake of the financial crisis, with the aim of helping
shareholders better understand and challenge executive-compensation
practices at major U.S. companies. After a series of corporate
scandals in the early 2000s and again during the financial crisis,
investors have scrutinized CEOs' rising pay and pressed boards to
better align it with performance.
Bank of America also on Monday released information on the pay
earned by executives other than Mr. Moynihan. Chief Operating
Officer Tom Montag, who runs the bank's businesses that cater to
companies and institutional investors, earned $19 million, up from
$17 million a year earlier. Other executives also got raises.
The bank also revealed in its annual report two new markets
where it plans to open branches soon: Salt Lake City and Lexington,
Ky. Too big to pursue more acquisitions after the financial crisis,
the lender is trying to grow instead by strategically expanding to
cities where it has no branches. In recent years, the lender has
opened or announced plans to open branches in the Denver,
Minneapolis, Indianapolis and Pittsburgh areas.
Write to Rachel Louise Ensign at rachel.ensign@wsj.com
(END) Dow Jones Newswires
March 12, 2018 19:03 ET (23:03 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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