CHARLOTTE, NC - Bank of America Corp (NYSE:BAC), currently trading near its 52-week high at $47.40 and commanding a market capitalization of $361 billion, today disclosed that its CEO, Brian T. Moynihan, received a compensation package totaling $35 million for the year 2024, marking a significant increase from his 2023 compensation of $29 million. This information is based on a recent filing with the Securities and Exchange Commission. According to InvestingPro analysis, the bank’s current valuation suggests potential upside based on its Fair Value assessment.
The Board of Directors, consisting of independent members, justified the increase by highlighting the company’s performance under Moynihan’s leadership. In 2024, Bank of America reported a net income of $27.1 billion and a 30% improvement in share price, with InvestingPro data showing an impressive six-month return of 29.54%. Trading at a P/E ratio of 14.62, this growth in market capitalization added nearly $70 billion to the company’s value by the end of the year.
Bank of America’s performance in 2024 was characterized by robust organic growth across all of its business segments, with a particularly strong showing in net interest income and fee businesses. The stabilization of credit costs contributed to the company’s ability to return more capital to shareholders than in the previous year, totaling $21 billion through dividends and stock repurchases. InvestingPro data reveals the bank has maintained dividend payments for 55 consecutive years, currently offering a 2.18% yield, with 8.33% dividend growth in the last year. Get access to 10+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
On the client front, the company experienced $42 billion in loan growth, reaching over $1.095 trillion by year-end. Additionally, the company managed $6.0 trillion in balances across loans, deposits, and investment accounts. Bank of America’s digital platforms saw significant engagement with 14 billion logins throughout the year.
In terms of employee relations, Bank of America raised its minimum hourly wage to $24, with plans to reach $25 by 2025. The company also announced its eighth consecutive year of Sharing Success awards, with 97% of employees receiving an award, aligning their interests with those of the shareholders.
Moynihan’s compensation structure remains consistent with previous years, comprising a $1.5 million base salary and an equity incentive of $33.5 million. The equity incentive includes time-based restricted stock units (RSUs) and performance-based RSUs, with no cash bonus involved. The performance RSUs will be earned only if the company meets specific financial performance criteria.
The report emphasizes that Moynihan’s compensation is in line with the company’s stock ownership requirements and subject to clawback policies, ensuring alignment with long-term shareholder value.
This announcement comes directly from a press release statement filed with the SEC.
In other recent news, Bank of America Corp. is in negotiations to acquire a $9 billion residential mortgage loan portfolio from Toronto-Dominion Bank (TSX:TD Bank). This acquisition is part of TD Bank’s efforts to comply with a new regulatory cap on its holdings. In a different development, the Federal Reserve has discontinued climate stress tests for major U.S. banks, including Bank of America Corp., meaning these banks will not have to submit data for these tests this year.
President Donald Trump recently addressed the World Economic Forum, urging Bank of America CEO Brian Moynihan and other banking leaders to ensure their services are open to all, regardless of political affiliation. In the realm of analyst notes, Truist Securities has increased Bank of America’s stock target to $53 and maintained a Buy rating. This adjustment follows the bank’s 2024 results and the management’s outlook for 2025.
Meanwhile, Piper Sandler has reduced Bank of America’s target to $49, while keeping a Neutral stance. This revision follows the company’s fourth-quarter 2024 earnings release and updated guidance. These are some of the latest developments that investors in Bank of America Corp. should be aware of.
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