Bank of America Gives CEO a $2 Million Raise. Does He Deserve It?

Bank of America became the latest bank on Wall Street to reward its top executive with a raise. But did CEO Brian Moynihan deserve it? Motley Fool contributor John Maxfield thinks so.

Feb 21, 2014 at 9:08AM


Bank of America (NYSE:BAC) announced on Wednesday that its chief executive officer, Brian Moynihan, got a $2 million raise for fiscal year 2013.

The news comes on the heels of yet another positive development for the bank, as a judge in New York refused to throw out an $8.5 billion settlement that Bank of America entered into in 2011. The ruling means the Charlotte-based bank is one giant step closer to fully atoning for its sins from the financial crisis.

But does this progress mean Moynihan deserved a nearly 17% raise? Motley Fool contributor John Maxfield thinks so.

In the first place, he will still make considerably less than his counterparts at JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS), whose CEOs took home $20 million and $23 million, respectively, in total compensation last year.

On top of this, he's overseen a dramatic improvement in Bank of America's fortunes by aggressively attacking expenses and putting billions of dollars in legal liability behind the financial behemoth. And finally, shares of Bank of America have outperformed effectively all of its rivals over the last few years, more than doubling since the start of 2012 alone.

As John discusses in the video below, these are the reasons Moynihan more than earned his keep in 2013.

Are you looking to get rich from bank stocks?
If so, then you'll want to learn about the brand-new company that's revolutionizing banking that's poised to kill the traditional brick-and-mortar banking model. And the best news is that, despite incredibly rapid growth, this company is still flying under most investors' radars. To learn the identity of this company before it's too late, click here to access our special free report.

John Maxfield owns shares of Bank of America. The Motley Fool recommends Bank of America and Goldman Sachs. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information