2015 was not a big year for raises nationwide. The average American saw but only a mere 2% increase on their wages last year. But apparently, Bank of America’s CEO cannot say the same.
CEO Brian Moynihan received a 23% pay increase on his salary in 2015 raising his salary to a whopping $16 million, according to Bank of America. This comes unappropriately at a time when Wall Street has become a bigger issue amongst election nominees.
Here is a breakdown of the year and Moynihan’s accomplishments:
- Bank of America’s stock dropped nearly 6% in 2015.
- Bank of America had to re-submit a stress test which basically tells the U.S. Federal Reserve how healthy a bank is amongst other factors.
- Brian Moynihan was close to being stripped of his position as chairman and CEO. Roughly about 37% of shareholders agreed that holding down two positions was not enough management to oversee operations throughout the company. Unfortunately that percentage needed to be higher.
- Bank of America did not pay the government the $16.6 billion settlement it owed due to fraud the company incurred both in 2015 and 2014. Due to this action, Bank of America’s income as a company grew about $14.4 billion last year.
Sources outside of the company stated that there really is no reason to justify this massive increase in Moynihan’s salary. With everything that happened to the bank last year, the bank would be managed properly in a more stable and profitable manner if the bank split into smaller parts.
Trying to find reasons to justify this unfair increase is a waste of time. JP Morgan CEO, Jamie Dimon, had his salary increased 35%, about $27 million. This is further proof that this system has gone haywire and is corrupt. Jim Lardner of Americans For Financial Reform, is part of a financial group that is pushing for regulators to pass rules on executive compensations.
This doesn’t necessarily mean that all Bank CEO’s follow this scheme. In fact, CEO’s for both Goldman Sachs and Morgan Stanley received pay-cuts this year in a modest fashion.
In the end Bank of America falls under the fifth most disliked company in America, a bad place to be especially when a Presidential Candidate like Bernie Sanders has campaigned on attacking Wall Street and the acts of income inequality. The last thing a bank would want to do is provide evidence of more corruption for political parties to point out.