Despite Losses, Bank of America CEO Receives Huge Raise
Despite the fact that Bank of America lost 58 percent of its value in 2011, its CEO received a compensation package worth $7.5 million. That's a six fold increase from the year before. The AP reports that under Brian Moynihan, Bank of America also lost its title as the No. 1 bank by assets to JPMorgan Chase.
The New York Times estimates the package is worth $8.1 million. The Times adds:
"Last year was a turbulent transition for the bank, the second-largest in the United States after JPMorgan Chase, with Bank of America shares dropping below the psychologically important $5 level at one point. During his second year leading the bank, Mr. Moynihan aggressively sold off noncore assets and built up capital levels. Investors have rewarded the strategy more recently, with the stock up sharply in 2012, currently trading at just under $10 a share."
Bloomberg reports that in 2012 and after Moynihan, 52, sold more than $33 billion assets, the bank's stock has rallied, advancing 70 percent. The Times reminds us that rally could also have to do with greater confidence in the U.S. economy and the fact that the bank passed a federal stress test.