Overview
Bank of America has set Chief Executive Officer Brian Moynihan’s total compensation for 2025 at $41 million, a 17% increase from his pay the previous year. The bank’s board preserved a base salary of $1.5 million and decided against a cash bonus, opting instead to deliver $39.5 million in equity incentive awards, according to a regulatory filing released Friday.
Rationale and company performance
The board pointed to the bank’s improved financial results in explaining the larger package. Net income rose 13% to $30.5 billion, and diluted earnings per share increased 19% to $3.81. Revenue climbed 7% to $113.1 billion, a performance the filing attributed in part to record net interest income.
Bank of America also reported operational gains. The bank said it produced about 250 basis points of operating leverage and improved its efficiency ratio by 147 basis points to 62%. At the same time, the board highlighted continued investment in people, technology, marketing, and delivery networks while maintaining disciplined expense management.
Balance sheet and business metrics
The filing noted the bank’s balance sheet strength, citing total assets of $3.4 trillion, including $201 billion of CET1 capital and $975 billion of average global liquidity sources. Loan balances rose 8% and deposits increased 3% during the period described.
Stock performance
Shareholder value also advanced, with the bank’s equity climbing 25% in 2025 to reach a new all-time high during the year. That followed a 31% increase in 2024. The company’s market capitalization grew 19% from December 31, 2024, keeping Bank of America as the second-largest U.S. bank by market value.
Structure of Moynihan’s 2025 award
The equity package is split across several formats. Thirty percent consists of cash-settled restricted stock units that vest over 12 months, 20% are stock-settled units that vest over four years, and 50% are performance-based stock units. The performance units do not vest automatically; they must be re-earned based on the company’s financial results for the 2026-2028 period.
The board increased the performance standards for those units and added the potential for an above-target payout, allowing up to 150% of the award if performance is exceptional.
Implications
The compensation arrangement balances immediate equity retention, longer-term stock settlement, and performance-based incentives tied to multi-year results. The filing frames the package against the backdrop of the bank’s recent profitability, efficiency improvements, and balance sheet metrics.