Bank of America’s new CEO, Brian Moynihan, didn’t bother to ask what his salary would be when he accepted the job late last year. In fact, he’s been working for almost a month without knowing how much he’s getting paid. Maybe he assumed he’d get a deal like predecessor Ken Lewis, who earned an annual salary of $1.5 million (plus bonus), and pocketed over $50 million to walk out the door at the end of last year. Well, Brian, here’s why job coaches always tell you to ask about money upfront: Instead of $1.5 million, you’re stuck with a meager $900,000 this year. And your bonus? Yeah, we’ll get back to you on that.
According to The Wall Street Journal:
Mr. Moynihan’s salary has been up in the air since he was named CEO in December. He didn’t raise the subject in his talks with Bank of America’s board, content to work it out later, said people familiar with the situation.
As expected, directors decided not to award Mr. Moynihan a bonus for 2009, people familiar with the deliberations said Wednesday. Bank of America officials told Treasury Department pay czar Kenneth Feinberg last year that none of the executives reporting directly to Mr. Lewis in 2008 would be eligible for an incentive-based award in 2009.
The 19% salary increase is consistent with the company’s effort to tread lightly on supercharged compensation matters following the repayment of $45 billion in federal bailout funds late last year. …
Mr. Moynihan, who took office Jan. 1, previously ran Bank of America’s consumer and small-business banking unit. His new salary doesn’t include any bonus he might collect for 2010 performance. His bonus will be decided early next year, people familiar with the situation said.
We assume Brian’s going to do just fine, despite his meager salary. And, as the Journal points out, he could have done much worse: “Bank of America didn’t want to go as low as Citigroup Inc., where CEO Vikram Pandit agreed to work for $1 in base salary until the New York bank returns to sustained profitability.”
BofA’s Moynihan Gets a 19% Raise [WSJ]