CHARLOTTE, N.C.: Bank of America Corp senior executives will not get cash bonuses for 2010 and Chief Executive Brian Moynihan will not receive a base salary increase in 2011, according to a securities filing on Monday, Jan 31.
This year Moynihan will have a base pay half as large as some of his chief rivals, with much of his compensation tied up in long-term awards.
The head of the largest U.S. bank by assets was paid $950,000 in 2010 base salary.
Bank of America's board did increase the base pay for other senior executives. The salaries for chief financial officer Charles Noski, investment banking chief Thomas Montag and consumer bank head Joe Price will rise to $850,000 in 2011 from $800,000, according to a filing with the Securities and Exchange Commission.
A company spokesman said the board elected to defer much of Moynihan's compensation into long-term awards of stock and cash that more closely tie company performance to his pay.
Moynihan can receive up to $9.1 million in restricted stock units that vest in 2014, if the bank meets certain performance requirements over the next 12 months, according to the filing.
Montag can receive up to $14.3 million in restricted stock under the same plan.
Also, the bank disclosed certain other senior executives will not receive a cash incentive payment for 2010 performance.
BofA struggled with write-downs in the value of its mortgage and credit and debit cards businesses in the second half of 2010, and the company reported its second consecutive net loss.
Bank of America reported a 2010 net loss of $3.6 billion, or 37 cents per share, driven primarily by two large write-downs in the value of the bank's cards and mortgage businesses during the year.
The 2011 pay freeze leaves Moynihan's salary well below that of some of his chief Wall Street rivals, who have received raises recently.
On Friday, Goldman Sachs Group Inc tripled CEO Lloyd Blankfein's base salary to $2 million and awarded him $12.6 million in stock.
Last week Citigroup Inc's board approved a base salary of $1.75 million for CEO Vikram Pandit. In 2009 he pledged to receive an annual salary of $1 until Citigroup returned to sustained profitability.
Bank of America's shares closed up 1 percent at $13.73 on the New York Stock Exchange. - Reuters
This year Moynihan will have a base pay half as large as some of his chief rivals, with much of his compensation tied up in long-term awards.
The head of the largest U.S. bank by assets was paid $950,000 in 2010 base salary.
Bank of America's board did increase the base pay for other senior executives. The salaries for chief financial officer Charles Noski, investment banking chief Thomas Montag and consumer bank head Joe Price will rise to $850,000 in 2011 from $800,000, according to a filing with the Securities and Exchange Commission.
A company spokesman said the board elected to defer much of Moynihan's compensation into long-term awards of stock and cash that more closely tie company performance to his pay.
Moynihan can receive up to $9.1 million in restricted stock units that vest in 2014, if the bank meets certain performance requirements over the next 12 months, according to the filing.
Montag can receive up to $14.3 million in restricted stock under the same plan.
Also, the bank disclosed certain other senior executives will not receive a cash incentive payment for 2010 performance.
BofA struggled with write-downs in the value of its mortgage and credit and debit cards businesses in the second half of 2010, and the company reported its second consecutive net loss.
Bank of America reported a 2010 net loss of $3.6 billion, or 37 cents per share, driven primarily by two large write-downs in the value of the bank's cards and mortgage businesses during the year.
The 2011 pay freeze leaves Moynihan's salary well below that of some of his chief Wall Street rivals, who have received raises recently.
On Friday, Goldman Sachs Group Inc tripled CEO Lloyd Blankfein's base salary to $2 million and awarded him $12.6 million in stock.
Last week Citigroup Inc's board approved a base salary of $1.75 million for CEO Vikram Pandit. In 2009 he pledged to receive an annual salary of $1 until Citigroup returned to sustained profitability.
Bank of America's shares closed up 1 percent at $13.73 on the New York Stock Exchange. - Reuters
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