The latest news on Bank of America’s cost cutting effort shows that the company is sparing no one.
According to the Wall Street Journal, CEO Brian Moynihan will not receive a cash bonus, or a raise on his $950,000 salary.
Here’s what he will get (from WSJ):
Mr. Moynihan gets restricted stock units that will vest monthly over the next year. They were worth $1.8 million as of Wednesday, when the award was granted. He also is eligible to earn $4.1 million in restricted units that are tied to the bank’s return on assets.
So Moynihan’s compensation is tied to the bank’s performance.
Since BofA’s rosy(ish) Q4 report earlier this year, the stock has been doing well. Critics, like legendary investor Jeff Gundlach, however, still smell trouble. The bank was able to raise cash through several one-time asset sales (the bank’s stake in the Commercial Bank of China, for one), and analysts argue that the bank still has work to do on its profits and losses.
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