Thursday, February 19, 2015

Would Brian work for less?

Would Brian Moynihan do the same job for less than $13 million a year?

Seems like the board of directors of Bank of America didn’t like BofA’s 2014 financial results a whole lot, so they cut CEO Moynihan’s total compensation package by $1 million.

Yup, they cut him back $1 million to a comparatively measly $13 million. I think he can still live on it….

Seems like BofA had only about $3.8 billion in total net income last year, down from $10 billion in 2013.

(By the way, BofA received billions of dollars in federal bailout money during the 2008-2009 financial meltdown, and it has paid tens of billions of dollars in fines and penalties connected to its illegal dealings in mortgages and derivatives that helped cause the meltdown).

Back to Moynihan: Let’s guess he was working at least 65 hours a week last year, but not enough to keep the bank’s net income at the lofty 2013 level….the grumpy directors decided to pay him only $3,846 an hour for that relatively crappy job performance.

Would Moynihan have done exactly the same work for only $12.5 million?

I’m thinking the BofA directors should think about this possibility.

Copyright © Richard Carl Subber 2015

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