Bank of America Corp. Chief Executive Brian Moynihan's pay increased 73 percent in 2012 from the previous year to $12.1 million, as the bank gave him a bigger package of stock awards.
The second-largest U.S. bank gave Moynihan a raise when other CEOs on Wall Street received a pay cut, after Bank of America's stock soared in 2012 and it made progress in resolving lawsuits from the financial crisis.
Moynihan received 926,238 shares of stock in three types of grants, including restricted shares and performance-based shares, according to a regulatory filing on Tuesday.
Moynihan earned a $950,000 salary in 2012, but received no cash bonus, similar to 2011, a person familiar with the situation said. The CEO's 2013 salary will increase to $1.5 million, the person said.
The stock grants for 2012 were worth $11.1 million at the closing price of $12.03 on Friday, the date they were awarded. Moynihan received grants worth about $6.1 million for 2011.
Bank of America's shares rose 109 percent in 2012, the best performance among stocks in the Dow Jones Industrial Average, as investors grew confident it had the capital it needed to meet new international guidelines.
Moynihan, however, is still wrestling with losses from the bank's 2008 Countrywide Financial acquisition and is under pressure to show the bank can increase earnings at a time of low interest rates and tighter regulations.
MORE THAN DIMON
His pay rose in a year in which other bank executives were not so fortunate. Morgan Stanley CEO James Gorman's total pay for 2012 fell 7 percent to $9.75 million, while JPMorgan Chase & Co awarded CEO Jamie Dimon $11.5 million after slashing his bonus in half after the bank lost billions on disastrous trades by its Chief Investment Office.
Moynihan made more than Dimon, even though his bank posted net income of $4.2 billion in 2012, compared to $21.3 billion for JPMorgan.
Bank of America's filings disclose only the stock portion of pay for Moynihan and other top executives in 2012. More details will be provided in the annual proxy filing this spring.
Moynihan's grants included 277,871 shares that will be paid out on a monthly basis in cash over the next year and 463,119 restricted shares that vest over three years. The remaining 185,248 performance-based shares will vest if the company meets return on asset goals for half the shares and growth in adjusted tangible book value goals for the other half over a three-year period.
The 2012 performance-based shares differ from previous grants, potentially giving executives another chance to make them pay off.
In 2011, the bank granted performance-based shares tied only to return on assets, a measure of profits compared to total assets. The bank needed to reach a minimum return on assets of 0.5 percent over a four-quarter period by the end of 2015 to pay out at least partially. The bank's return on assets in 2012 was 0.19 percent, up from 0.06 percent in 2011.
The bank's tangible book value per share of common stock grew to $13.36 in the fourth quarter of 2012 from $12.95 a year earlier as the bank built capital. Tuesday's filings did not disclose the performance-based goals for the shares.
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