Bank of America CEO Compensation Rises 17% to $35 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy BAC?
Source: seekingalpha
- Compensation Increase: Bank of America's board has decided to raise CEO Brian Moynihan's 2025 compensation by 17%, increasing it from $35 million in 2024 to $41 million, reflecting strong company performance with a 13% net income growth and 7% revenue growth.
- Stock Performance: In 2025, Bank of America stock rose by 25%, significantly outperforming the S&P 500's 16% increase, indicating the company's competitive position and enhanced investor confidence in the market.
- Compensation Structure: Moynihan's annual base salary remains at $1.5 million with no cash bonus, while his total equity incentive award for 2025 is valued at $39.5 million, consisting of 30% cash-settled restricted stock units, 20% stock-settled RSUs vesting annually over four years, and 50% performance-based RSUs.
- Shareholder Returns: The board's compensation decision took into account the company's balance sheet strength, expense management, low net charge-off ratio, and shareholder returns, demonstrating the company's ongoing commitment to enhancing shareholder value.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 52.520
Low
55.00
Averages
61.17
High
71.00
Current: 52.520
Low
55.00
Averages
61.17
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Performance: In 2025, Bank of America stock rose by 25%, significantly outperforming the S&P 500's 16% increase, indicating the company's competitive position and enhanced investor confidence in the market.
- Compensation Structure: Moynihan's annual base salary remains at $1.5 million with no cash bonus, while his total equity incentive award for 2025 is valued at $39.5 million, consisting of 30% cash-settled restricted stock units, 20% stock-settled RSUs vesting annually over four years, and 50% performance-based RSUs.
- Shareholder Returns: The board's compensation decision took into account the company's balance sheet strength, expense management, low net charge-off ratio, and shareholder returns, demonstrating the company's ongoing commitment to enhancing shareholder value.
See More
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- Significant Financing: Since 2020, Bank of America Community Development Banking has provided over $42 billion in financing, creating and preserving more than 74,000 housing units across 335 cities in 40 states, demonstrating its substantial impact in the affordable housing sector.
- 2025 Project Achievements: In 2025, Bank of America financed $7.4 billion for 87 development projects in 68 cities, representing over 11,000 affordable housing units, addressing the needs of diverse populations including families, seniors, and the homeless, thereby reinforcing its market position.
- Health and Housing Integration: In 2025, the bank financed 39 projects with a healthcare component, representing 3,700 housing units, providing health education and preventive care aimed at enhancing residents' overall health and promoting long-term community wellness.
- Community Development Investment: In 2025, Bank of America closed $357 million in direct and fund equity investments focused on workforce and middle-income housing, expected to create over 3,400 high-quality affordable housing units in competitive markets, helping to alleviate housing shortages.
See More
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- Tech Stock Pullback: The three major U.S. stock averages declined this week due to fears surrounding rapid AI developments, with software giants like Netflix and Fox dropping 6.5% and 11.6% respectively, indicating market concerns over the profitability of streaming platforms.
- Oversold Status: According to CNBC Pro, Fox Class A shares have a 14-day RSI of nearly 18.6, while Netflix's RSI is about 24, suggesting these stocks are technically oversold and may rebound in the near term.
- DoorDash Performance: DoorDash shares, with an RSI of 16.45, fell over 12% this week; however, Bank of America reiterated its buy rating, suggesting that a strong first-quarter outlook could serve as a clearing event, reflecting confidence in its future performance.
- Overbought Real Estate Stocks: Equinix and Texas Pacific Land are considered overbought with RSI levels around 85 and 82, respectively, with Equinix rising 12.7% this week after providing strong first-quarter guidance and increasing its dividend for the 11th consecutive year, highlighting robust demand for data centers.
See More
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- Strategic Support: Kraft Heinz's new CEO Steve Cahillane announced a pause on the planned separation after five weeks in office, indicating that the challenges are manageable and opportunities exceed expectations; this decision received backing from Buffett and Berkshire Hathaway, aiming to enhance the company's competitiveness and customer service capabilities.
- Shareholder Interest Preservation: Berkshire holds a 27.5% stake in Kraft Heinz, currently valued at approximately $8.1 billion, and the pause on the separation helps protect shareholder interests by avoiding potential share sales, reflecting Buffett's confidence in the company's future.
- Market Reaction: Although Kraft Heinz's stock initially fell upon the announcement of the separation pause, it quickly rebounded to close the week with a 0.7% gain, indicating market recognition and confidence in the new strategy.
- Future Outlook: Berkshire is expected to release its latest portfolio snapshot next week, with investors keenly watching whether it continues to reduce its positions in Apple and Bank of America, as well as developments regarding new portfolio manager Todd Combs, which will influence market expectations for Berkshire's future performance.
See More
Kraft Heinz Pauses Separation Plan Under New CEO
- New CEO's Strategic Shift: Kraft Heinz's new CEO Steve Cahillane announced a pause on the planned separation after five weeks in office, believing that the challenges faced are manageable and opportunities exceed expectations, which may enhance the company's competitiveness and market performance.
- Berkshire's Support: Berkshire Hathaway's CEO Greg Abel publicly endorsed Cahillane's decision, emphasizing that this strategic adjustment will allow management to focus on strengthening Kraft Heinz's market competitiveness, reflecting Berkshire's confidence in its investment.
- Positive Shareholder Reaction: Although Kraft Heinz's stock initially fell upon the announcement of the separation pause, it quickly rebounded to close the week with a 0.7% gain, indicating market recognition and anticipation of the new strategy.
- Potential Equity Changes: Berkshire had previously considered selling its stake in Kraft Heinz, and the pause on the separation may help stabilize the stock price and avoid large-scale sell-offs, further solidifying Berkshire's investment position in the company.
See More
Growth Stocks Decline, Value Stocks Poised for Opportunity
- Uber's Value Potential: Uber Technologies (UBER) achieved a 20% revenue growth in its recently ended fourth quarter, and despite a 25% pullback due to market concerns, its current P/E ratio of 16 indicates its potential as a value stock, especially with the autonomous driving market projected to grow at an annualized rate of 52.5% in the coming years.
- Merck's Strategic Shift: Merck (MRK) faces challenges with its cancer drug Keytruda nearing patent expiration, yet through acquisitions like Prometheus and Cidara, it expects to add $70 billion in annual revenue by the mid-2030s, with a current P/E ratio of only 12, highlighting significant future growth potential.
- Bank of America's Value Rebound: Bank of America (BAC) has seen its stock price double since late 2023, and despite pressures from declining interest rates and rising loan delinquency rates, its current P/E ratio below 13 suggests that negative market expectations may already be priced in, offering a compelling entry point for investors.
- Market Self-Correction: Since early 2024, the S&P 500 Growth Index has outperformed the Value Index, but the trend of market self-correction may lead to a resurgence in value stocks, prompting investors to consider increasing their allocation to value stocks to navigate future market fluctuations.
See More
Bank of America CEO Compensation Rises 17% to $35 Million
- Compensation Increase: Bank of America's board has decided to raise CEO Brian Moynihan's 2025 compensation by 17%, increasing it from $35 million in 2024 to $41 million, reflecting strong company performance with a 13% net income growth and 7% revenue growth.
- Stock Performance: In 2025, Bank of America stock rose by 25%, significantly outperforming the S&P 500's 16% increase, indicating the company's competitive position and enhanced investor confidence in the market.
- Compensation Structure: Moynihan's annual base salary remains at $1.5 million with no cash bonus, while his total equity incentive award for 2025 is valued at $39.5 million, consisting of 30% cash-settled restricted stock units, 20% stock-settled RSUs vesting annually over four years, and 50% performance-based RSUs.
- Shareholder Returns: The board's compensation decision took into account the company's balance sheet strength, expense management, low net charge-off ratio, and shareholder returns, demonstrating the company's ongoing commitment to enhancing shareholder value.
See More
