DEF 14A of Bank Of America Corp /De/

Filed Mar 11, 2024 · FY20230001193125-24-064529

Open on EDGAR

Record date
| Year-end equity values and equity exercised or vested table | 79 | | Pension benefits table | 81 | | Nonqualified deferred compensation table | 82 | | Potential payments upon termination or change in control | 83 | | CEO pay ratio | 85 | | Pay versus performance table | 86 | | Proposal 3: Ratifying the appointment of our independent registered public accounting firm for 2024 | 88 | | Audit committee pre-approval policies and procedures | 89 | | Audit Committee Report | 89 | | Proposal 4: Proposal to amend and restate the Bank of America Corporation Equity Plan | 90 | | Proposals 5-10: Shareholder proposals | 97 | | Voting, attending the annual meeting, and other information | 110 | | Appendix A: Reconciliation of GAAP and non-GAAP financial measures | A-1 | | Appendix B: Amended and Restated Bank of America Corporation Equity Plan | B-1 |
Pay-for-performance compensation philosophy
| In recognition of strong company performance in delivering Responsible Growth, and the CEO’s individual performance, the Compensation and Human Capital Committee and the Board’s independent directors determined the following 2023 compensation for our CEO: | | | • Total compensation, inclusive of base salary and equity-based incentives, of $29.0 million, down 3% compared to 2022 • The Compensation and Human Capital Committee and Board undertook a robust performance evaluation and decision process, which included a detailed review of performance results under the four tenets of Responsible Growth • The performance evaluation considered the “What,” which includes a thorough evaluation of performance against scorecard metrics, and the “How,” which includes the manner in which results, both financial and non-financial, were achieved • 94.8% of Mr. Moynihan’s total compensation is variable and directly linked to company performance. All CEO variable compensation was delivered in equity-based awards (as it has been since 2010) • Half of Mr. Moynihan’s variable compensation is performance restricted stock units (PRSUs) that must be re-earned based on sustained three-year average performance of key metrics (return on assets (tax-normalized) and growth in adjusted tangible book value) | | | • The remainder of the CEO’s variable pay is 30% cash-settled restricted stock units (CRSUs) and 20% time-based restricted stock units (TRSUs) settled in stock; TRSUs will vest over four years • Mr. Moynihan must hold 50% of net after-tax shares received from equity-based awards until one year after retirement | |
Key considerations informing the Board’s approach
Key considerations informing the Board’s approach Director experience, skills, and expertise. When evaluating and identifying director candidates, the Corporate Governance, ESG, and Sustainability Committee considers the experiences, skills, and expertise that are critical to the Board’s ability to provide effective oversight of the company and are directly relevant to our business, strategy, and operations. The Committee seeks candidates with experiences, skills, and expertise in financial services and other global, highly complex and regulated industries, strategic planning and business development, business operations, marketing and distribution, technology, cybersecurity, risk management and financial controls, human capital management, corporate governance, and public policy. Director diversity. Our Board views diversity, including diversity of thought, perspective, and experience, as a priority. Through the Corporate Governance, ESG, and Sustainability Committee, the Board regularly assesses its diversity and seeks representation across a range of attributes when identifying and evaluating director candidates. The Committee demonstrates this commitment to diversity by requesting the inclusion of diverse candidates in its consideration of potential directors in its work with third-party search firms. (See information on the next page for the Committee’s engagement with external search firms.) When evaluating director candidates, the Committee reviews available or self-identified information regarding each candidate, including, but not limited to, professional qualifications, experience, and expertise as well as race, ethnicity, gender, nationality, national origin, sexual orientation, military service, and other diverse characteristics. Director time commitment. Our Board understands the time commitment involved in serving on the Board and its committees. Through the Committee, the Board evaluates whether candidates and serving directors are able to devote the time necessary to discharge their duties as directors, taking into account their primary occupations, memberships on other boards, and other responsibilities. In 2022, at the Committee’s recommendation, our Board amended its policy on outside board service set forth in the Corporate Governance Guidelines. The revised policy limits the maximum number of public company boards on which a director on our Board may serve to four public companies (including our Board) and specifies that any public company chief executive officer who serves as a director on our Board may not serve on the boards of more than two public companies (including our Board).
Key considerations informing the Board’s approach
| The Committee assesses directors’ time commitment to the Board throughout the year, including through the annual formal self-evaluation process and prior to the annual renomination of currently serving directors. Under our Corporate Governance Guidelines, directors are expected to seek Committee approval prior to joining the board of another public company, and directors who change principal occupations must offer to resign from the Board, subject to further evaluation by the Committee and the Lead Independent Director. The Committee regularly reviews and closely monitors external perspectives and trends on the appropriate number of public company boards on which directors may serve, including the proxy voting guidelines of our major shareholders and input from shareholder engagement discussions, voting policies of the major proxy advisory firms, corporate governance guidelines adopted by other public companies, board trends at peers and other significant public companies, and advice from outside advisors. | Outside board service policy | | | | All directors 4 total public company boards | CEO directors 2 total public company boards | | | (including our Board) | (including our Board) | | | Aligns with majority of institutional shareholders’ policies. All directors and nominees comply with our outside board service policy. | |
Key considerations informing the Board’s approach
| 2024 PROXY STATEMENT | 9 |
Key considerations informing the Board’s approach
| Director retirement policy. Our Corporate Governance Guidelines provide that a director who would be age 75 as of the time of election shall not be nominated for initial election to the Board, provided that the Board may approve the nomination for reelection of a director who would be age 75 at the time of the election, if, in light of all the circumstances, the Board determines that it is in the best interests of our company and shareholders. |
Succession planning and the director recruitment process
Succession planning and the director recruitment process
Succession planning and the director recruitment process
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Succession planning and the director recruitment process
| 10 | BANK OF AMERICA |
Our director nominees
Our director nominees Our director nominees bring diverse backgrounds and viewpoints, and a broad range of skills and experiences that are critical to the Board’s ability to provide effective oversight of the company and directly relevant to our business, strategy, and operations. They are seasoned leaders from research academia, government service, private organizations, and global public companies that are subject to extensive regulations and operate in highly competitive environments. They serve or have served as chief executive officers or C-suite executives leading business innovation and transformation, and they have expertise managing risk, operations, finance, technology, human capital, and other areas important to our business, strategy, and operations. Their varying tenure on the Board strengthens our Board’s oversight with a balance of historical insights about our company and new perspectives.
Our director nominees
| 2024 PROXY STATEMENT | 11 |
Our director nominees
| | Our Board recommends a vote “FOR” each of the 13 nominees listed below for election as a director (Proposal 1). |
Our director nominees
Set forth below are each nominee’s name, age as of our annual meeting date, principal occupation, business experience, and U.S.-listed public company directorships held during the past five years. We also discuss the qualifications, attributes, and skills that led our Board to nominate each for election as a Bank of America director.
Our director nominees
| Age: 72 Director since: August 2012 Ms. Allen is an experienced director who brings deep auditing and consulting services, financial reporting, and corporate governance experience to our Board. As a corporate leader, Ms. Allen has broad experience leading and working with large, complex businesses and brings an international perspective on risk management and strategic planning. During her nearly 40-year career with Deloitte, the largest professional services organization in the U.S. and member firm of Deloitte Touche Tohmatsu Limited (DTTL), she became the first woman elected to serve as Chairman of the Board and also served as a member of DTTL’s Global Board of Directors, the chair of its Global Risk Committee, and the U.S. representative of its Global Governance Committee. During her tenure at Deloitte, Ms. Allen oversaw relationships with major multinational corporations and provided oversight and guidance to management. | Sharon L. Allen Former Chairman, Deloitte LLP (Deloitte) Committee membership: • Audit Committee (chair) • Corporate Governance, ESG, and Sustainability Committee Professional highlights: • Served as Chairman of Deloitte, a firm that provides audit, consulting, financial advisory, risk management, and tax services, as the U.S. member firm of DTTL from 2003 to 2011 • Employed at Deloitte for nearly 40 years in various leadership roles, including Partner and Regional Managing Partner, responsible for audit and consulting services for a number of Fortune 500 and large private companies • Former member of the Board of Directors of First Solar, Inc. and its Technology Committee, and Chair of its Audit Committee • Member of the Board of Directors of Albertsons Companies, Inc. and its Audit & Risk Committee, and Chair of its Governance, Compliance & ESG Committee • Member of the Global Board of Directors, Chair of the Global Risk Committee, and U.S. Representative on the Global Governance Committee of DTTL from 2003 to 2011 Other leadership experience and service: • Former Director and Chair of the National Board of Directors of the YMCA of the USA, a leading nonprofit organization for youth development, healthy living, and social responsibility • Former Vice Chair of the Board of Trustees of the Autry National Center, the governing body of the Autry Museum of the American West • Appointed by President George W. Bush to the President’s Export Council, which advised the President on export enhancement Other U.S.-listed company boards: • Albertsons Companies, Inc. • First Solar, Inc. (past five years) |
Our director nominees
| 12 | BANK OF AMERICA |
Our director nominees
| Age: 61 Director since: September 2022 Mr. Almeida is an active chief executive officer and public company director with experience leading large, global companies subject to regulatory oversight. His service as a board member in a variety of industries also brings additional perspective to our Board. As Chairman, President, and Chief Executive Officer of Baxter, Mr. Almeida is leading the company through a period of transformation driven by innovation, operational excellence, and strategic execution. Prior to joining Baxter, Mr. Almeida served as chairman, president and chief executive officer of Covidien plc and served in leadership roles at Tyco Healthcare (Covidien’s predecessor), Wilson Greatbatch Technologies Inc., American Home Products’ Acufex Microsurgical division, and Johnson & Johnson’s Professional Products division. He began his career as a management consultant at Andersen Consulting (Accenture) and previously served on the boards of Walgreens Boots Alliance, Inc., Analog Devices, Inc., EMC Corporation, State Street Corporation and Covidien plc. | José (Joe) E. Almeida Chairman, President, and Chief Executive Officer, Baxter International Inc. (Baxter) Committee membership: • Audit Committee • Compensation and Human Capital Committee Professional highlights: • Chairman of the Board, President and CEO of Baxter, a global medtech leader, effective January 1, 2016. Began serving as an executive officer of Baxter in October 2015 • Served as Senior Advisor with The Carlyle Group, a multinational private equity, alternative asset management and financial services corporation, from May 2015 to October 2015 • Served as the Chairman, President and Chief Executive Officer of Covidien, a global healthcare products company, from March 2012 through January 2015, prior to the acquisition of Covidien by Medtronic plc, and President and Chief Executive Officer of Covidien from July 2011 to March 2012 • Prior to becoming Covidien’s President and Chief Executive officer, served in several leadership roles at Covidien, including President of its Worldwide Medical Devices business; also served as President of International and Vice President of Global Manufacturing for Covidien’s predecessor, Tyco Healthcare • Served on the boards of directors of: Walgreens Boots Alliance, Inc. from 2017 to 2022, including on its Compensation Committee; State Street Corporation from 2013 to 2015, including on its Executive Compensation Committee; Analog Devices, Inc. during 2015; and EMC Corporation from 2014 to 2015 • Served on the Board of Trustees of Partners in Health from 2013 to 2021 Other leadership experience and service: • Serves on the Board of Trustees of Northwestern University Other U.S.-listed company boards: • Baxter • Walgreens Boots Alliance, Inc. (past five years) |
Our director nominees
| 2024 PROXY STATEMENT | 13 |
Our director nominees
| Age: 73 Director since: July 2013 Mr. de Weck is a Swiss national based in Europe with deep knowledge of the global financial services industry. As a senior executive with a tenure of more than three decades in global financial services, including as a member of the Group Executive Committee and Global Head of Private Wealth Management of Deutsche Bank AG in London, and as Chief Executive Officer of North America, Chief Executive Officer of Europe, and a member of the Group Executive Board at UBS AG, and as Chief Executive Officer of UBS Capital, Mr. de Weck has extensive experience in risk management, including credit risk management. He brings valuable international perspective to our company’s business activities, including to our European subsidiaries through his service on the Boards of Directors of Merrill Lynch International (MLI), our U.K. broker-dealer subsidiary, and BofA Securities Europe S.A. (BofASE), our French broker-dealer subsidiary. | Pierre J.P. de Weck Former Chairman and Global Head of Private Wealth Management, Deutsche Bank AG Committee membership: • Compensation and Human Capital Committee • Enterprise Risk Committee Professional highlights: • Served as the Chairman and Global Head of Private Wealth Management and as a member of the Group Executive Committee of Deutsche Bank AG from 2002 to May 2012 • Served on the Management Board of UBS from 1994 to 2001; as Head of Institutional Banking from 1994 to 1997; as Chief Credit Officer and Head of Private Equity from 1998 to 1999; and as Head of Private Equity from 2000 to 2001 • Held various senior management positions at Union Bank of Switzerland, a predecessor firm of UBS, from 1985 to 1994 • Chair of the Board of Directors of MLI (and previously chair of the MLI Board’s Risk Committee), and Chair of the Board of Directors of BofASE Other U.S.-listed company boards: • N/A |
Our director nominees
| 14 | BANK OF AMERICA |
Our director nominees
| Age: 69 Director since: January 2013 Mr. Donald has more than three decades of strategic planning, global operations, and risk management experience in regulated, consumer, retail, and distribution businesses. He brings expertise in business transformation through his service as President and Chief Executive Officer of Carnival, one of the world’s largest leisure travel companies with operations worldwide, his leadership roles with global responsibilities at Monsanto, and his experience as a public company director. Through his leadership of nonprofit organizations, including The Executive Leadership Council and the Juvenile Diabetes Research Foundation International, Mr. Donald also brings focus and perspective on our work to promote equality, diversity, and inclusion, and advance economic opportunity for our employees and the communities we serve. | Arnold W. Donald Former President and Chief Executive Officer, Carnival Corporation and Carnival plc (Carnival) Committee membership: • Audit Committee • Compensation and Human Capital Committee Professional highlights: • President, Chief Executive Officer, and Chief Climate Officer of Carnival, a cruise and vacation company from July 2013 to November 2022; began serving on Carnival’s Board of Directors in 2001 • Served as President and Chief Executive Officer from November 2010 to June 2012 of The Executive Leadership Council, a nonprofit organization providing a professional network and business forum to African-American executives at major U.S. companies • President and Chief Executive Officer of the Juvenile Diabetes Research Foundation International from January 2006 to February 2008 • Served as Chairman and Chief Executive Officer of Merisant from 2000 to 2003, a privately held global manufacturer of tabletop sweeteners, and remained as Chairman until 2005 • Joined Monsanto in 1977 and held several senior leadership positions with global responsibilities, including President of its Agricultural Group and President of its Nutrition and Consumer Sector, over a more than 20-year tenure • Served as a member of the Board of Directors of Crown Holdings, Inc. and member of its Compensation Committee; served as a member of the Board of Directors of Carnival and member of its Executive Committee • Member of the Board of Directors of Salesforce, Inc. and a member of its Audit & Finance and Nominating & Corporate Governance Committees • Member of the Board of Directors of MP Materials Corp. and a member of its Compensation Committee • Member of the Board of Directors of GE Vernova, effective upon expected completion of GE Vernova’s spin-off from General Electric Company as a U.S.-listed public company Other leadership experience and service: • Appointed by President Clinton and re-appointed by President George W. Bush to the President’s Export Council Other U.S.-listed company boards: • MP Materials Corp. • Salesforce, Inc. • Carnival; Crown Holdings, Inc. (past five years) |
Our director nominees
| 2024 PROXY STATEMENT | 15 |
Our director nominees
| Age: 73 Director since: August 2012 Ms. Hudson has extensive executive leadership experience, with a focus on risk management. She brings international perspective, geopolitical insights, and broad knowledge in strategic planning, technology, global operations, and risk management to our Board through a career in the defense, aerospace, and security industries that spanned more than 40 years. As the former President and Chief Executive Officer of BAE and the first woman to lead a major national security corporation, Ms. Hudson oversaw a global, highly regulated, and complex U.S.-based defense, aerospace, and security company, wholly owned by London-based BAE Systems plc (BAE Systems), where she also served as an executive director. Through her leadership positions, including with General Dynamics Corporation and its armament and technical products division, Ms. Hudson also brings focus and perspective to the Board’s oversight of technology and related risks, including cybersecurity risks. | Linda P. Hudson Former Chairman and Chief Executive Officer, The Cardea Group, LLC Former President and Chief Executive Officer, BAE Systems, Inc. (BAE) Committee membership: • Corporate Governance, ESG, and Sustainability Committee • Enterprise Risk Committee Professional highlights: • Chairman and Chief Executive Officer of The Cardea Group, LLC, a management consulting business, from May 2014 to January 2020 • Served as CEO Emeritus of BAE, a U.S.-based subsidiary of BAE Systems, a global defense, aerospace, and security company headquartered in London, from February 2014 to May 2014, and as President and Chief Executive Officer of BAE from October 2009 until January 2014 • Served as President of BAE Systems’ Land and Armaments operating group, the world’s largest military vehicle and equipment business, from October 2006 to October 2009 • Prior to joining BAE, served as Vice President of General Dynamics Corporation and President of its Armament and Technical Products business; held various positions in engineering, production operations, program management, and business development for defense and aerospace companies • Served as a member of the Executive Committee and as an executive director of BAE Systems from 2009 until January 2014 and as a member of the Board of Directors of BAE from 2009 to April 2015 • Served as a member of the Board of Directors of The Southern Company and its Nominating, Governance and Corporate Responsibility Committee and Operations, Environmental and Safety Committee from 2014 to July 2018 • Member of the Board of Directors of Trane Technologies plc (formerly Ingersoll-Rand plc) and its Compensation Committee, Sustainability, Corporate Governance and Nominating Committee, and Technology and Innovation Committee • Member of the Board of Directors of TPI Composites, Inc. and its Nominating and Corporate Governance Committee and Technology Committee Other leadership experience and service: • Elected member to the National Academy of Engineering, one of the highest professional honors accorded an engineer • Member of the Board of Directors of the University of Florida Foundation, Inc. and the advisory board of the University of Florida Engineering Leadership Institute • Former member of the Charlotte Center Executive Board for the Wake Forest University School of Business • Former member of the Board of Trustees of Discovery Place, a nonprofit education organization dedicated to inspiring exploration of the natural and social world • Member of the Board of Directors of UF Health, the health care system affiliated with the University of Florida College of Medicine Other U.S.-listed company boards: • Trane Technologies plc (formerly Ingersoll-Rand plc) • TPI Composites, Inc. |
Our director nominees
| 16 | BANK OF AMERICA |
Our director nominees
| Age: 67 Director since: April 2006 Ms. Lozano has a broad range of leadership experience in public and private sectors and a track record as a champion for equality, opportunity, and representation. As Chief Executive Officer of College Futures Foundation, a charitable foundation focused on increasing the rate of bachelor’s degree completion among California student populations who are low-income and have had a historically low college success rate, she worked to increase the rate of college graduation and improve opportunity for low-income students and students of color in California. With 30 years at La Opinión, the largest Spanish-language newspaper in the U.S., including as editor and publisher, as Chairman and Chief Executive Officer of its parent company, ImpreMedia LLC, and as co-founder of the Aspen Institute Latinos and Society Program, Ms. Lozano possesses deep insights into the issues that impact the Hispanic-Latino community. As a director serving on the boards of large organizations with diversified international operations, including Apple Inc. and Target Corporation, and previously The Walt Disney Company, Ms. Lozano has long-standing experience overseeing matters ranging from corporate governance, human capital management, and executive compensation, to risk management and financial reporting. In addition, as a member of California’s Task Force on Jobs and Business Recovery, Ms. Lozano provides valuable perspective on important public policy, societal, and economic issues relevant to our company. | Monica C. Lozano Former Chief Executive Officer, College Futures Foundation Former Chairman, US Hispanic Media Inc. Lead Independent Director, Target Corporation Committee membership: • Compensation and Human Capital Committee (chair) • Enterprise Risk Committee Professional highlights: • Chief Executive Officer of College Futures Foundation from December 2017 to July 2022 and member of the Board of Directors from December 2019 to July 2022 • Served as Chair of the Board of Directors of U.S. Hispanic Media Inc., the parent company of ImpreMedia, a leading Hispanic news and information company, from June 2014 to January 2016 • Served as Chairman of ImpreMedia from July 2012 to January 2016, Chief Executive Officer from May 2010 to May 2014, and Senior Vice President from January 2004 to May 2010 • Served as Publisher of La Opinión, a subsidiary of ImpreMedia and the leading Spanish-language daily print and online newspaper in the U.S., from 2004 to May 2014, and Chief Executive Officer from 2004 to July 2012 • Currently serves as a strategic advisor to multiple media companies • Lead Independent Director of the Board of Directors of Target Corporation and member of its Governance & Sustainability Committee, Chair of its Compensation & Human Capital Management Committee • Member of the Board of Directors of Apple Inc. and its Audit and Finance Committee Other leadership experience and service: • Member of California’s Task Force on Jobs and Business Recovery • Served as a member of President Obama’s Council on Jobs and Competitiveness from 2011 to 2012 and served on President Obama’s Economic Recovery Advisory Board from 2009 to 2011 • Appointed by the U.S. Ambassador to Mexico to serve on COMEXUS, a binational commission dedicated to strengthening ties between the two countries through business, education, and cultural collaboration • Chair of the Board of Directors of the Weingart Foundation • Served as the Chair of the Board of Regents of the University of California, as a member of the Board of Trustees of The Rockefeller Foundation, as a member of the Board of Trustees of the University of Southern California, and as a member of the State of California Commission on the 21st Century Economy Other U.S.-listed company boards: • Apple Inc. • Target Corporation |
Our director nominees
| 2024 PROXY STATEMENT | 17 |
Our director nominees
| Age: 64 Director since: January 2010 As our Chief Executive Officer, Mr. Moynihan leads a team of more than 200,000 employees focused on driving Responsible Growth for our teammates, clients, communities, and shareholders. Under his leadership, the company provides core financial services to three client groups through our eight lines of business. This has delivered record earnings and significant capital return to shareholders. Mr. Moynihan has demonstrated leadership qualities, management capability, knowledge of our business and industry, and a long-term strategic perspective. In addition, he has many years of international and domestic financial services experience, including wholesale and retail businesses. | Brian T. Moynihan Chair of the Board and Chief Executive Officer, Bank of America Corporation Committee membership: Attends meetings of all of the Board committees Professional highlights: • Appointed Chair of the Board of Directors of Bank of America Corporation in October 2014 and President and Chief Executive Officer in January 2010. Prior to becoming Chief Executive Officer, Mr. Moynihan led each of the company’s operating units • Member (and prior Chair) of the Board of Directors of Bank Policy Institute (Chair of the Global Regulatory Policy Committee) • Member (and prior Chair) of Financial Services Forum • Chair of the Supervisory Board of The Clearing House Association L.L.C. • Member of Business Roundtable • Member (and prior Chairman) of the World Economic Forum’s International Business Council (Chair of Stakeholder Capitalism Metrics Initiative) • Chair of the Board of The U.S. Council on Competitiveness • Chair of the Sustainable Markets Initiative Other leadership experience and service: • Incoming Chancellor and current member of Board of Fellows of Brown University • Member of Advisory Council of Smithsonian’s National Museum of African American History and Culture • Member of Charlotte Executive Leadership Council • Chair of Massachusetts Competitive Partnership Other U.S.-listed company boards: • N/A |
Our director nominees
| 18 | BANK OF AMERICA |
Our director nominees
| Age: 69 Director since: January 2013 Mr. Nowell is an active board leader with a deep range of corporate audit, financial expertise, risk management, operational, and strategic planning experience. During his more than 30-year career with multinational consumer products conglomerates, he oversaw the worldwide corporate treasury functions, including debt and investment activities, capital markets strategies, and foreign exchange as Senior Vice President and Treasurer of Pepsi, finance functions as Chief Financial Officer of Pepsi Bottling Group, and held responsibilities for strategy and business development as a Senior Vice President at RJR Nabisco. Mr. Nowell brings a robust corporate governance and board leadership perspective through his current and prior service on public company boards across varying industries and through his ongoing dialogue with institutional shareholders as our Board’s Lead Independent Director. | Lionel L. Nowell III Lead Independent Director, Bank of America Corporation Former Senior Vice President and Treasurer, PepsiCo, Inc. (Pepsi) Committee membership: Attends meetings of all of the Board committees Professional highlights: • Served as Senior Vice President and Treasurer of Pepsi, a leading global food, snack, and beverage company, from 2001 to May 2009, and as Chief Financial Officer of The Pepsi Bottling Group and Controller of Pepsi • Served as Senior Vice President, Strategy and Business Development at RJR Nabisco, Inc. from 1998 to 1999 • Held various senior financial roles at the Pillsbury division of Diageo plc, including Chief Financial Officer of its Pillsbury North America, Pillsbury Foodservice, and Häagen-Dazs divisions, and also served as Controller and Vice President of Internal Audit of the Pillsbury Company • Served as Lead Director of the Board of Directors of Reynolds American, Inc. from January 2017 to July 2017 and as a Board member from September 2007 to July 2017 • Served as a member of the Board of Directors of American Electric Power Company, Inc., from July 2004 to April 2020, chair of its Audit Committee, member of its Directors and Corporate Governance, Policy, Executive, and Finance Committees • Member of the Board of Directors of Ecolab Inc., Chair of its Audit Committee, and member of its Finance Committee • Member of the Board of Directors of Textron Inc. and Chair of its Audit Committee • As our Board’s Lead Independent Director Mr. Nowell has an extensive set of responsibilities that brings him into frequent communications with our primary regulators, institutional shareholders, other stakeholders, and our employees and customers. See page 27 • In 2022, Mr. Nowell was named “Independent Director of the Year” by Corporate Board Member Other leadership experience and service: • Emeritus member of the Dean’s Advisory Council at The Ohio State University Max M. Fisher College of Business Other U.S.-listed company boards: • Ecolab Inc. • Textron Inc. • American Electric Power Company, Inc. (past five years) |
Our director nominees
| 2024 PROXY STATEMENT | 19 |
Our director nominees
| Age: 67 Director since: July 2019 Ms. Ramos is an experienced public company executive who brings global business leadership, financial expertise, and strategic planning experience to our Board. Ms. Ramos served as Chief Executive Officer of ITT, a diversified manufacturer of engineered components and customized technology solutions for the transportation, industrial, and energy markets, focusing on innovation and technology. She was Chief Financial Officer at ITT, Furniture Brands International, and the U.S. KFC division of Yum! Brands, and served as the corporate treasurer at Yum! Brands. Through her public company board service on the Boards of Phillips 66 and RTX Corporation, Ms. Ramos brings board-level insights into issues facing complex, regulated global public companies and oversight experience in finance, audit, corporate governance, public policy, and sustainability. | Denise L. Ramos Former Chief Executive Officer and President, ITT Inc. (ITT) Committee membership: • Audit Committee • Compensation and Human Capital Committee Professional highlights: • Chief Executive Officer and President of ITT, a diversified manufacturer of critical components and customized technology solutions, from 2011 to 2019; Senior Vice President and Chief Financial Officer of ITT from 2007 to 2011 • Served as Chief Financial Officer for Furniture Brands International, a former home furnishings company, from 2005 to 2007 • Served in various roles at Yum! Brands Inc., an American fast-food company, from 2000 to 2005, including Chief Financial Officer of the U.S. Division of KFC Corporation and as Senior Vice President and Treasurer • Began her career at Atlantic Richfield Company, where she spent more than 20 years in a number of finance positions • Member of the Board of Directors of Phillips 66 and its Audit and Finance, Nominating and Governance, and Executive Committees, and Chair of its Public Policy and Sustainability Committee • Member of the Board of Directors of RTX Corporation and its Audit, and Governance and Public Policy Committees Other U.S.-listed company boards: • Phillips 66 • RTX Corporation |
Our director nominees
| 20 | BANK OF AMERICA |
Our director nominees
| Age: 65 Director since: October 2018 Dr. Rose is an executive leader in academics and the private sector who brings risk management experience, public policy and social thought leadership, broad global financial services industry knowledge, and strategic planning experience to our Board. As former President of Bowdoin College, Dr. Rose has a legacy of promoting intellectual engagement; advancing diversity, equity, and inclusion; increasing access and opportunity for students; addressing mental health challenges facing youth; and promoting sustainability. As a Harvard Business School faculty member, Dr. Rose has taught and written on issues of leadership, ethics, the financial crisis, and the role of business in society. Dr. Rose spent the first 20 years of his career with JPMorgan Chase & Co. and its predecessor company, where he retired as Vice Chairman after holding leadership positions in investment banking, equities, securities, derivatives, and corporate finance divisions and leading the company’s diversity, equity, and inclusion initiatives. Following retirement from JPMorgan Chase, Dr. Rose received a master’s degree and PhD with distinction in sociology from the University of Pennsylvania focusing on issues of race in America. Dr. Rose also holds an MBA from the University of Chicago. Dr. Rose has served on several financial institutions boards and currently serves as Chair of the Board of Trustees of the Howard Hughes Medical Institute, the U.S.’s largest private supporter of academic biomedical research. | Clayton S. Rose Baker Foundation Professor of Management Practice at Harvard Business School Committee membership: • Compensation and Human Capital Committee • Enterprise Risk Committee (chair) Professional highlights: • Baker Foundation Professor of Management Practice at Harvard Business School • Former President of Bowdoin College • Served as a professor at Harvard Business School prior to his appointment as President of Bowdoin College • Served as Vice Chairman, headed two lines of business–Global Investment Banking and Global Equities–and was a member of JPMorgan Chase’s senior management team during his approximately 20-year tenure at JPMorgan Chase • Served as a member of the Boards of Directors of XL Group, plc, Federal Home Loan Mortgage Corporation (Freddie Mac), and Mercantile Bankshares Corp. Other leadership experience and service: • Trustee and Chair of the Board of Trustees for Howard Hughes Medical Institute and formerly Chair of the Audit and Compensation Committee • Served on the company’s Board of Directors from 2013 to 2015 Other U.S.-listed company boards: • N/A |
Our director nominees
| 2024 PROXY STATEMENT | 21 |
Our director nominees
| Age: 72 Director since: June 2016 Mr. White is a seasoned executive and public company director with experience leading the global operations and strategic direction of complex and highly regulated multinational consumer retail and distribution businesses. He possesses executive and board leadership experience and provides broad ranging operational and strategic insights, an international perspective, and financial expertise to our Board. Mr. White was President, Chief Executive Officer, and Chairman of the board of directors of DIRECTV, where he oversaw the operations and strategic direction of the company in the U.S. and in Latin America. Prior to joining DIRECTV, he served as the Chief Executive Officer of PepsiCo International; Frito-Lay’s Europe, Africa, and Middle East division; and Snack Ventures Europe, PepsiCo’s partnership with General Mills International. He also served as Chief Financial Officer of PepsiCo., Inc., Pepsi-Cola Company worldwide, and Frito-Lay International. Mr. White began his career as a management consultant at Bain & Company and Arthur Andersen & Co. | Michael D. White Former Chairman, President, and Chief Executive Officer, DIRECTV Committee membership: • Audit Committee • Corporate Governance, ESG, and Sustainability Committee (chair) Professional highlights: • Served as Chairman, President, and Chief Executive Officer of DIRECTV, a leading provider of digital television entertainment services, from January 2010 to August 2015, and as a Director of the company from November 2009 until August 2015 • Chief Executive Officer of PepsiCo International from February 2003 until November 2009; and served as Vice Chairman and director of PepsiCo from March 2006 to November 2009, after holding positions of increasing importance with PepsiCo since 1990 • Served as Senior Vice President at Avon Products, Inc. • Served as a Management Consultant at Bain & Company and Arthur Andersen & Co. • Lead Director of the Board of Directors of Kimberly-Clark Corporation, Chair of its Executive Committee (retiring in May 2024) • Member of the Board of Directors of Whirlpool Corporation, Chair of its Audit Committee, and member of its Corporate Governance and Nominating Committee (retiring in April 2024) Other leadership experience and service: • Vice Chair of The Partnership to End Addiction Other U.S.-listed company boards: • Kimberly-Clark Corporation (retiring in May 2024) • Whirlpool Corporation (retiring in April 2024) |
Our director nominees
| 22 | BANK OF AMERICA |
Our director nominees
| Age: 71 Director since: April 2016 Mr. Woods is a veteran financial services executive with experience in risk management, corporate strategy, finance, and the corporate and investment banking businesses. Mr. Woods began his nearly 40-year tenure at CIBC and its predecessor firms in its investment banking department and later served as Head of Canadian Corporate Banking, Chief Financial Officer, and Chief Risk Officer, before retiring as Vice Chairman. As Senior Executive Vice President and Chief Risk Officer of CIBC during the financial crisis, Mr. Woods focused on risk management and CIBC’s risk culture. He chaired CIBC’s Asset Liability Committee, served as CIBC’s lead liaison with regulators, and was an active member of CIBC’s business strategy group. He brings international perspective, including to our European subsidiaries through his service on the Boards of Directors of MLI and BofASE. | Thomas D. Woods Former Vice Chairman and Senior Executive Vice President, Canadian Imperial Bank of Commerce (CIBC) Committee membership: • Corporate Governance, ESG, and Sustainability Committee • Enterprise Risk Committee Professional highlights: • Served as Vice Chairman and Senior Executive Vice President of CIBC, a leading Canada-based global financial institution, from July 2013 until his retirement in December 2014 • Served as Senior Executive Vice President and Chief Risk Officer of CIBC from 2008 to July 2013, and Senior Executive Vice President and Chief Financial Officer of CIBC from 2000 to 2008 • Began his career at CIBC in 1977 through Wood Gundy, a predecessor firm; served in various senior leadership positions, including as Controller of CIBC, as Chief Financial Officer of CIBC World Markets (CIBC’s investment banking division), and as the Head of CIBC’s Canadian Corporate Banking division • Served as Chair of the Board of Directors of Hydro One Limited, an electricity transmission and distribution company serving the Canadian province of Ontario, and publicly traded and listed on the Toronto Stock Exchange, from August 2018 to July 2019 • Member of the Board of Directors of MLI, chair of its Risk Committee, and member of its Governance Committee • Member of the Board of Directors of BofASE Other leadership experience and service: • Member of the Board of Directors of Alberta Investment Management Corporation, a Canadian institutional investment fund manager, and on the advisory committee of Cordiant Capital Inc., a global infrastructure and real assets manager • Member of the University of Toronto College of Electors • Member of Board of Directors of Institute of Corporate Directors (Institut des Administrateurs de Sociétés) • Former member of the Board of Directors of Jarislowsky Fraser Limited, a global investment management firm, from 2016 to 2018, former member of the Boards of Directors of DBRS Limited and DBRS, Inc., an international credit rating agency, from 2015 to 2016, and former member of the Board of Directors of TMX Group Inc., a Canada-based financial services company, from 2012 to 2014 Other U.S.-listed company boards: • N/A |
Our director nominees
| 2024 PROXY STATEMENT | 23 |
Our director nominees
| Age: 65 Director since: December 2017 Dr. Zuber is a distinguished research scientist and academic leader who brings a breadth of risk management, technology, geopolitical insights, and strategic planning thought leadership to our Board. Dr. Zuber is the first woman to lead a science department at MIT and the first woman to lead a NASA planetary mission. In her role as Vice President for Research at MIT, Dr. Zuber oversees multiple interdisciplinary research laboratories and centers focusing on cancer research, energy and environmental solutions initiatives, plasma science and fusion, electronics, nanotechnology, and radio science and technology. She also led the development of MIT’s initial Climate Action Plan, and is responsible for intellectual property, research integrity and compliance, and research relationships with the federal government. Dr. Zuber has held leadership roles on 10 space exploratory missions with NASA. She also served on the National Science Board under President Obama and President Trump and is currently Co-Chair of President Biden’s Council of Advisors on Science and Technology. | Maria T. Zuber Vice President for Research and E. A. Griswold Professor of Geophysics, Massachusetts Institute of Technology (MIT) Committee membership: • Corporate Governance, ESG, and Sustainability Committee • Enterprise Risk Committee Professional highlights: • Vice President for Research at MIT, a leading research institution, since 2013, where she oversees MIT Lincoln Laboratory and more than a dozen interdisciplinary research laboratories and centers and led the development of MIT’s initial Climate Action Plan • Served as a Professor at MIT since 1995, and was Head of the Earth, Atmospheric, and Planetary Sciences Department from 2003 to 2011 • Served in a number of positions at NASA, including as a Geophysicist from 1986 to 1992, a Senior Research Scientist from 1993 to 2010, and as Principal Investigator of the Gravity Recovery and Interior Laboratory (GRAIL) mission from 2008 to 2017, which was designed to create the most accurate gravitational map of the moon to date and give scientists insight into the moon’s internal structure, composition, and evolution, and held leadership roles associated with scientific experiments or instrumentation on 10 NASA missions • Member of the Board of Directors of Textron Inc. and Chair of its Nominating and Corporate Governance Committee Other leadership experience and service: • Appointed by President Biden in 2021 as Co-Chair of the President’s Council of Advisors on Science and Technology • Appointed by President Obama in 2013 and reappointed by President Trump in 2018 to the National Science Board, a 25-member panel that serves as the governing board of the National Science Foundation and as advisors to the President and Congress on policy matters relating to science and engineering; served as Board Chair from 2016 to 2018 • Co-Chair of the National Academies of Science, Engineering and Medicine’s National Science, Technology, and Security Roundtable • Chair of NASA’s Mars Sample Return Mission Standing Review Board • Board of Trustees of Brown University Other U.S.-listed company boards: • Textron Inc. |
Our director nominees
| Accordingly, our Board recommends a vote “FOR” each of the 13 nominees listed above for election as a director (Proposal 1). |
Our director nominees
| 24 | BANK OF AMERICA |
Our director nominees
Corporate governance
Our Board of Directors
Our Board of Directors Our Board and its committees oversee:
Our Board of Directors
| • | Management’s development and implementation of a multi-year strategic business plan and an annual financial operating plan, and tracking our progress to meet these plans |
Our Board of Directors
| • | Our Risk Framework and management’s identification, measurement, monitoring, and control of our company’s material key risks, including operational (conduct, model, third-party, technology, information security, and data risks), credit, market, liquidity, compliance, strategic, and reputational risks, and other risks that span multiple key risk types, such as climate risk |
Our Board of Directors
| • | Our company’s maintenance of high ethical standards and effective policies and practices to protect our reputation, assets, and business |
Our Board of Directors
| • | Our corporate audit function, our independent registered public accounting firm, and the integrity of our consolidated financial statements |
Our Board of Directors
| • | Our company’s establishment, maintenance, and administration of appropriately designed compensation programs and plans |
Our Board of Directors
Our Board and its committees are also responsible for:
Our Board of Directors
| • | Reviewing, monitoring, and approving succession plans for our Board’s Chair and Lead Independent Director, and for our CEO and other key executives to promote senior management continuity |
Our Board of Directors
| • | Identifying and evaluating director candidates, and nominating qualified individuals for election to our Board |
Our Board of Directors
| • | Reviewing our CEO’s performance and approving the total annual compensation for our CEO and other executive officers |
Our Board of Directors
| • | Reviewing our activities for driving sustainable Responsible Growth, including our commitment and actions to share success with our communities, our human capital management policies and practices to be a great place to work, and operational excellence |
Our Board of Directors
| • | Overseeing and participating in our shareholder engagement activities to ascertain perspectives and topics of interest from our shareholders |
Our Board of Directors
| • | Conducting an annual, formal self-evaluation of our Board and its committees |
Conduct and culture
| • | overseeing our incentive plan design and governance processes to provide for an appropriate balance of risk and compensation outcomes. |
Key practices in compensation governance and risk management
| • | Our incentive plan design and governance processes appropriately balance risks with compensation outcomes. |
Key practices in compensation governance and risk management
| • | Senior management and independent control functions, including risk, annually review and certify our incentive plans. |
Promoting physical, emotional, and financial wellness
| Financial wellness. Having financial wellness means developing and maintaining good money habits, planning for short-term and long-term expenses, and setting aside savings for goals or emergencies. We support teammates in reaching financial wellness with retirement savings plans and other programs, along with access to self-guided financial planning tools and expert advice. | 401(k) contributions 5% match plus 2-3% annual contribution | Tuition assistance more than $19.5M for nearly 6,000 teammates in 2023 | | | Note: Specific programs vary by region. U.S. programs shown. | |
Women’s Business Enterprise National Council
| | Other stock units | | | | | Name | Common stock beneficially owned | Deferred director stock awards(1) | Unvested restricted stock units(2) | Total | | Directors | | | | | | Sharon L. Allen(3) | 99,927 | 23,849 | — | 123,776 | | José (Joe) E. Almeida | 13,890 | — | — | 13,890 | | Pierre J.P. de Weck | 89,529 | — | — | 89,529 | | Arnold W. Donald | 111,488 | 7,161 | — | 118,649 | | Linda P. Hudson | 19,507 | 108,524 | — | 128,031 | | Monica C. Lozano | 3,000 | 214,503 | — | 217,503 | | Lionel L. Nowell III | 3,930 | 161,203 | — | 165,133 | | Denise L. Ramos | — | 61,144 | — | 61,144 | | Clayton S. Rose(4) | 25,515 | 51,308 | — | 76,823 | | Michael D. White(5) | 85,650 | 79,422 | — | 165,072 | | Thomas D. Woods(6) | 114,664 | — | — | 114,664 | | Maria T. Zuber | 53,389 | — | — | 53,389 | | Named Executive Officers | | | | | | Brian T. Moynihan(7) | 2,656,367 | — | 1,757,569 | 4,413,936 | | Alastair M. Borthwick(8) | 326,855 | — | 631,069 | 957,924 | | Dean C. Athanasia(9) | 442,647 | — | 777,883 | 1,220,530 | | James P. DeMare(10) | 272,570 | — | 1,104,726 | 1,377,296 | | Matthew M. Koder | 547,652 | — | 896,353 | 1,444,005 | | All directors and current executive officers as a group (30 persons)(11) | 10,362,618 | 707,114 | 12,174,119 | 23,243,851 |
Women’s Business Enterprise National Council
| Name | Time-based RSUs (TRSUs) | Cash-settled RSUs (CRSUs) | Performance RSUs (PRSUs) | Total stock units | | Brian T. Moynihan | 383,163 | 248,195 | 1,126,211 | 1,757,569 | | Alastair M. Borthwick | 371,693 | — | 259,376 | 631,069 | | Dean C. Athanasia | 441,004 | — | 336,879 | 777,883 | | James P. DeMare | 744,260 | — | 360,466 | 1,104,726 | | Matthew M. Koder | 610,747 | — | 285,606 | 896,353 | | All current executive officers as a group | 7,492,475 | 248,195 | 4,433,449 | 12,174,119 |
2023 Director pay components
2023 Director pay components The primary elements of 2023 annual compensation and incremental awards for our non-management directors, all of whom are independent, are provided in the table below. Incremental awards recognize additional responsibilities and the time commitment of these critical Board leadership roles.
2023 Director pay components
| | | Incremental awards for board leadership | | | | Annual award components | Non- management directors ($) | Lead Independent Director ($) | Audit & Enterprise Risk Committee chairs ($) | Compensation and Human Capital & Corporate Governance, ESG, and Sustainability Committee chairs ($) | | Cash Award | 120,000 | 75,000 | 40,000 | 30,000 | | Restricted Stock Award | 270,000 | 125,000 | N/A | N/A |
2023 Director pay components
The annual restricted stock award in 2023 was made pursuant to the Bank of America Corporation Equity Plan (BACEP). The number of restricted shares awarded is equal to the dollar value of the award divided by the closing price of our common stock on the NYSE on the grant date, rounded down to the next whole share, with cash paid for any fractional share. The annual restricted stock award is subject to a one-year vesting requirement. If a director retires before the one-year vesting date, a prorated amount of the award vests based on the number of days the director served during the vesting period before retirement. Any unvested amount of the award is forfeited. Following the BACEP’s amendment and restatement, effective April 25, 2023, dividends accrue during the one-year vesting period and are paid when the award vests. Prior to April 25, 2023, dividends were paid on the award when they were paid on shares of our common stock.
Director compensation review
Director compensation review Our Compensation and Human Capital Committee annually reviews and periodically recommends updates to the director compensation program to our Board for approval. The Committee’s recommendation takes into account our director compensation philosophy, changes in market practices, and consultation with the Committee’s independent compensation consultant, Farient Advisors. As disclosed in our 2023 proxy statement, following the Committee’s 2022 review, our Board approved: for all non-management directors, a $20,000 annual cash award increase to $120,000 and a $20,000 annual restricted stock award increase to $270,000; for our Lead Independent Director, a $25,000 incremental annual cash award increase to $75,000 and a $25,000 incremental annual restricted stock award increase to $125,000. These changes took effect as of our 2023 annual meeting of shareholders and are reflected in the table above. No changes were made to the form or amount of director compensation as part of the 2023 review.
Director deferral plan
Director deferral plan Non-management directors may elect to defer all or a portion of their annual restricted stock or cash awards through the Bank of America Corporation Director Deferral Plan (Director Deferral Plan). When directors elect to defer their restricted stock award, their stock account is credited with stock units equal in value to the restricted stock award and subject to the same vesting requirement applicable to restricted stock awards to directors. Each stock unit is equal in value to a share of our common stock but because it is not an actual share of our common stock, it does not have any voting rights. When directors elect to defer their cash award, they may choose to defer into either a stock account or a cash account. Deferrals into a stock account are credited with dividend equivalents in the form of additional stock units and deferrals into the cash account are credited with interest at a long-term bond rate. Following retirement from our Board and depending on the director’s selection, a non-management director may receive the stock account balance (to the extent vested) and cash account balance in a single lump-sum cash payment or in a series of cash installment payments.
Stock retention requirements and hedging prohibition for directors
| • | Under our stock retention requirements, non-management directors are required to hold and cannot sell the restricted stock they receive as compensation (except as necessary to pay taxes on taxable events such as vesting) until termination of their service. All non-management directors are in compliance with these requirements. |
Stock retention requirements and hedging prohibition for directors
| • | The BACEP prohibits our directors from pledging equity-based awards, including restricted stock awards. |
2023 Director compensation
2023 Director compensation The following table shows the compensation paid for services in 2023 to our non-management directors, all of whom are independent:
2023 Director compensation
| Director | Fees earned or paid in cash ($)(1) | Stock awards ($)(2) | All other compensation ($)(3) | Total ($) | | Sharon L. Allen | 160,000 | 270,000 | 0 | 430,000 | | José (Joe) E. Almeida | 120,000 | 270,000 | 0 | 390,000 | | Pierre J.P. de Weck | 120,000 | 270,000 | 318,026 | 708,026 | | Arnold W. Donald | 120,000 | 270,000 | 0 | 390,000 | | Linda P. Hudson | 120,000 | 270,000 | 0 | 390,000 | | Monica C. Lozano | 150,000 | 270,000 | 10,000 | 430,000 | | Lionel L. Nowell III | 195,000 | 395,000 | 0 | 590,000 | | Denise L. Ramos | 120,000 | 270,000 | 0 | 390,000 | | Clayton S. Rose | 160,000 | 270,000 | 0 | 430,000 | | Michael D. White | 120,000 | 270,000 | 0 | 390,000 | | Thomas D. Woods | 120,000 | 270,000 | 136,205 | 526,205 | | Maria T. Zuber | 120,000 | 270,000 | 0 | 390,000 | | Frank P. Bramble, Sr. (deceased) | 150,000 | 270,000 | 300,000 | 720,000 | | R. David Yost (retired) | 0 | 0 | 200,000 | 200,000 |
2023 Director compensation
| (1) The amounts in this column represent the annual cash award plus any Lead Independent Director or committee chair cash retainers paid in 2023, including amounts deferred under the Director Deferral Plan. In addition, our Board appointed Mr. White as Chair of the Corporate Governance, ESG, and Sustainability Committee, effective January 1, 2024. For his services as Chair from January 1, 2024 to the 2024 annual meeting, Mr. White received a prorated committee chair cash retainer, which is not reflected in the table above. |
2023 Director compensation
| For 2023 cash awards deferred into the stock account under the Director Deferral Plan, our directors were credited with the stock units shown in the table below based on the closing price of our common stock on the date of deferral: |
2023 Director compensation
| Director | Stock units (#) | Value of deferred stock units ($) | | Denise L. Ramos | 4,160.89 | 120,000 |
2023 Director compensation
| 2024 PROXY STATEMENT | 51 |
2023 Director compensation
| (2) The amounts in this column represent the aggregate grant date fair value of restricted stock awards granted during 2023, whether or not those awards were deferred under the Director Deferral Plan. The grant date fair value is based on the closing price of our common stock on the NYSE on the grant date. As of December 31, 2023, our non-management directors held the number of unvested shares of restricted stock or, if deferred, unvested stock units shown in the table below: |
2023 Director compensation
| Director | Unvested shares of restricted stock or stock units (#) | | Sharon L. Allen | 9,362 | | José (Joe) E. Almeida | 9,361 | | Pierre J.P. de Weck | 9,361 | | Arnold W. Donald | 9,361 | | Linda P. Hudson | 9,362 | | Monica C. Lozano | 9,362 | | Lionel L. Nowell III | 13,696 | | Denise L. Ramos | 9,362 | | Clayton S. Rose | 9,362 | | Michael D. White | 9,362 | | Thomas D. Woods | 5,054 | | Maria T. Zuber | 9,361 | | Frank P. Bramble, Sr. (deceased)* | 0 | | R. David Yost (retired) | 0 |
2023 Director compensation
| * Pursuant to the terms of Mr. Bramble’s 2023 restricted stock award, shares became fully vested as of the date of his death. |
2023 Director compensation
| (3) Our directors are eligible to participate in our matching gifts program, under which our charitable foundation matches up to $5,000 in donations made annually by our employees and active directors to approved charitable organizations. Eligibility for matching gifts is based on the year the charitable donation was made by the director although the match may be completed in a subsequent year. This program is also available to all U.S.-based, benefits eligible employees. The values in this column reflect the amounts that were donated to charities in 2023 on behalf of directors under the matching gifts program. The following amounts match director donations made in 2023: Ms. Lozano, $5,000; and the following amounts match director donations made prior to 2023: Ms. Lozano, $5,000. |
2023 Director compensation
| Mr. Yost retired from our Board at the 2023 annual meeting. A charitable gift of $200,000 was made in 2023 on behalf of Mr. Yost to recognize his retirement from and service to our Board. Mr. Bramble passed away on September 23, 2023. A charitable gift of $300,000 was made in 2023 in Mr. Bramble’s honor and in recognition of his life and service to our Board. |
2023 Director compensation
| Mr. de Weck is chair of the board of directors of Merrill Lynch International (MLI), a United Kingdom broker-dealer subsidiary of Bank of America. For his services as chair of the board of directors of MLI, Mr. de Weck received an annual cash retainer totaling £135,000. Mr. de Weck is also chair of the board of directors of BofA Securities Europe S.A. (BofASE), a French broker-dealer subsidiary of Bank of America. For his services as chair of the board of directors of BofASE, Mr. de Weck received an annual cash retainer totaling €140,000. The retainers paid in 2023 are reported in the table above based on a weighted average exchange rate of approximately 0.81 pounds sterling to one dollar for his MLI service and approximately 0.93 euros to one dollar for his BofASE service. The exchange rate used for each payment was based on the average exchange rate for the month prior to the month of payment. |
2023 Director compensation
| Mr. Woods is a member of the board of directors of MLI. For his services as a non-management director of MLI and chair of the MLI board risk committee, Mr. Woods received an annual cash retainer totaling £110,000. The retainer paid in 2023 is reported in the table above based on a weighted average exchange rate of approximately 0.81 pounds sterling to one dollar. The exchange rate used for each payment was based on the average exchange rate for the month prior to the month of payment. In addition, Mr. Woods was appointed as a member of the board of directors of BofASE, effective January 29, 2024. For his services as a member of the board of directors of BofASE, Mr. Woods will receive an annual cash retainer totaling €90,000, prorated for commencement of services beginning January 29, 2024. This 2024 retainer is not reflected in the table above. |
2023 Director compensation
| MLI and BofASE are both subject to extensive foreign regulatory requirements. In light of the regulated status of these subsidiaries and Mr. de Weck’s and Mr. Woods’ responsibilities on these boards of directors for these entities, we believe the annual cash retainers paid to Mr. de Weck and Mr. Woods are commensurate with their roles and responsibilities. |
2023 Director compensation
| This column excludes the perquisites received by a director to the extent the total value of such perquisites was less than $10,000 in aggregate, as permitted under SEC rules. |
2023 Director compensation
| 52 | BANK OF AMERICA |
2023 Director compensation
| Proposal 2: Approving our executive compensation (an advisory, non-binding “Say on Pay” resolution) |
2023 Director compensation
Proposal 2: Approving our executive compensation (an advisory, non-binding “Say on Pay” resolution) We are seeking an advisory vote to approve our executive compensation for 2023. At our 2023 annual meeting of shareholders, our shareholders voted to have a “Say on Pay” vote each year. As a result, we will conduct an advisory vote on executive compensation annually at least until the next shareholder advisory vote on the frequency of such votes. Although the “Say on Pay” vote is advisory and is not binding on our Board, our Compensation and Human Capital Committee will take into consideration the outcome of the vote when making future executive compensation decisions. At the 2023 annual meeting of shareholders, 69.1% of the votes cast favored our “Say on Pay” proposal. The Committee considered this result along with input from shareholders during a robust shareholder engagement process in 2023 to inform enhancements to our executive compensation program and disclosures. Our Board has designed our current executive compensation program to appropriately link compensation realized by our executive officers to our performance and properly align the interests of our executive officers with those of our shareholders. The details of this compensation for 2023, and the reasons we awarded it, are described in “Compensation discussion and analysis,” starting below.
2023 Director compensation
| | Our Board recommends a vote “FOR” approving our executive compensation (an advisory, non-binding “Say on Pay” resolution) (Proposal 2). |
2023 Director compensation
Our Board recommends that our shareholders vote in favor of the following resolution: “Resolved, that our shareholders approve, on an advisory basis, the compensation of our company’s named executive officers, as disclosed pursuant to the compensation disclosure rules of the U.S. Securities and Exchange Commission, including the Compensation discussion and analysis, the compensation tables, and the accompanying narrative discussion disclosed in this proxy statement.” Compensation discussion and analysis
2023 Director compensation
| 1. Executive summary | 54 | | a. Shareholder engagement & “Say on Pay” results | 54 | | b. What we heard and how we responded | 55 | | c. Executive compensation philosophy | 56 | | d. Philosophy on one-time awards | 56 | | e. 2023 Executive compensation highlights | 57 | | 2. Performance evaluation and pay decision process | 58 | | 3. 2023 Company, segment, & individual performance | 60 | | a. Company performance | 60 | | b. Segment performance | 61 | | c. Individual performance and pay rationale highlights | 62 | | 4. Compensation decisions | 65 | | a. 2023 Performance year total compensation decisions | 65 | | b. Management team stock award | 66 |
2023 Director compensation
| 5. Executive compensation program features | 67 | | a. Executive pay components & variable pay mix | 67 | | b. Standards for performance restricted stock units | 68 | | c. Compensation risk management features | 69 | | 6. Other compensation topics | 71 | | a. Results for performance restricted stock units | 71 | | b. 2023 Competitor group | 72 | | c. Retirement benefits | 72 | | d. Health and welfare benefits & perquisites | 73 | | e. Tax deductibility of compensation | 73 |
2023 Director compensation
| 2024 PROXY STATEMENT | 53 |
b. What we heard and how we responded
| | WHAT WE HEARD | HOW WE RESPONDED | | | Belief that one-time awards should be infrequent, and when used, have a clear and transparent rationale disclosed Preference that if one-time awards are used, they have performance conditions for vesting Interest in a better understanding of the Committee’s philosophy for one-time awards to understand when they may be considered in the future | • The Committee declared its philosophy on the use of one-time awards, including only to be used infrequently and in exceptional circumstances to achieve business objectives beyond what could be achieved through annual performance year compensation. (See “Philosophy on one-time awards” on page 56) • Performance conditions will be included for vesting in the event future one-time awards are deemed appropriate. (See “Philosophy on one-time awards” on page 56) • Detailed rationale can be found for Mr. DeMare’s Management Team stock award granted in February 2023. This award was determined as part of 2022 compensation decisions following significant changes made to the Management Team announced in late 2021 and prior to our receipt of 2023 “Say on Pay” results. (See “Management team stock award” on page 66) | | | Recognition that the Committee’s use of business judgment is an important part of the pay determination process given the regulatory environment and complexity of a large bank; however, would like additional insight into how business judgment is used in the pay decision process Interest in a better understanding of the key performance factors and metrics driving pay decisions | • Enhanced disclosure of the Committee’s step-by-step performance evaluation and pay decision process, which more clearly illustrates that business judgment is applied after the Committee completes a robust and metric-oriented evaluation of performance against a balanced scorecard and considers a range of specific factors to inform the compensation decisions. (See “Performance evaluation and pay decision process” on page 58) • Added pay rationale highlights for each named executive officer, including the CEO, in addition to individual performance highlights to demonstrate the link from performance factors to the compensation decisions more clearly. (See “Individual performance and pay rationale highlights” on page 62) • Enhanced disclosure of the relative performance results the Committee uses to evaluate company performance each year, including net income, revenue, total shareholder return, diluted earnings per share growth, and market capitalization rankings against primary competitors. (See “Company performance” on page 60) |
b. What we heard and how we responded
| Peer Groups | • The Committee conducted a peer group review in 2023 which resulted in updates to our leading financial institutions peer group to include U.S. regional banks and credit card and wealth management companies. These companies provide a broader range of competitors in business segments that we operate in. Shareholders expressed that a broader 2023 competitor group would be helpful for use in analyzing pay-for-performance alignment. (See “2023 Competitor group” on page 72) | | Performance Year Compensation Table | • The performance year compensation decision table now includes three years of performance year compensation determinations. Our shareholders expressed that this view would be helpful for pay-for-performance analysis considering the timing disconnect between the performance year decisions and disclosures in the Summary Compensation Table. (See “2023 Performance year total compensation decisions” on page 65) | | Pay Mix | • To further drive long-term alignment with shareholders, the percentage of variable pay delivered in long-term equity-based awards has been increased from 60% to 70% for named executive officers other than the CEO. CEO variable pay mix is unchanged with 100% of pay delivered in the form of equity-based awards. (See “Executive pay components & variable pay mix” on page 67) | | Clawbacks | • Expanded clawback features by updating our Incentive Compensation Recoupment Policy to meet new SEC and NYSE requirements. Our equity-based awards to our executive officers are subject to three separate and distinct cancellation and clawback features and all equity-based award recipients are subject to detrimental conduct cancellation and clawback provisions. (See “Multiple cancellation & clawback features” on page 70) |
Named executive officers
| • | The pay rationale for Mr. Moynihan’s compensation can be found on page 62. |
Named executive officers
| • | Half of Mr. Moynihan’s 2023 variable pay is awarded as performance restricted stock units and must be re-earned, meaning vesting occurs only if performance standards are met over a subsequent three-year period; 100% of the award is the maximum that can be earned. |
Named executive officers
| • | The variable pay mix for named executive officers other than the CEO was changed to increase the percentage of long-term equity from 60% to 70%, and the percentage of cash was decreased from 40% to 30%. The Compensation and Human Capital Committee changed this mix to further drive long-term alignment with shareholders. |
Named executive officers
| • | The Compensation and Human Capital Committee did not grant any one-time equity awards to any named executive officers in February 2024 for 2023 performance. The Committee did grant Mr. DeMare a management team award in February 2023 for 2022 performance, which is reflected in the 2023 Summary Compensation Table. This award was determined prior to our receipt of 2023 “Say on Pay” results. See “Management team stock award” on page 66. |
I. Performance Metrics and Scorecards
I. Performance Metrics and Scorecards At the start of each year, goals aligned to the tenets of Responsible Growth are set for each executive officer and progress to meeting those goals is tracked on scorecards. Individual scorecards are tailored to each named executive officer and include enterprise-wide and line of business metrics. These scorecards and additional performance information are reviewed by the Board over the course of the year and evaluated at the conclusion of each performance year. In addition to evaluation of the scorecards, the Committee’s compensation decision process includes a robust review of company and line of business performance as well as individual performance for each named executive officer. The Committee considers both absolute and relative metrics when evaluating performance, including relative rankings for company performance against our peers and market share for relevant business segments. For relative metrics considered in 2023, see the “2023 Company, segment, & individual performance” section on page 60. Our performance framework for named executive officers is aligned to qualitative and quantitative metrics associated with the four tenets of Responsible Growth. Below are examples of key metrics considered under each tenet of Responsible Growth that are tracked and evaluated across company, line of business, and individual performance, as appropriate by role. These metrics are generally consistent from year to year and support the Committee in tracking and evaluating progress over time.
I. Performance Metrics and Scorecards
| Responsible Growth: Performance Metrics | | | | | Grow and win in the market • Net income • Revenue • Total shareholder return • Return on assets • Tangible book value | Grow with our customer-focused strategy • Customer satisfaction and client experience • Digital adoption • Deposit growth • New accounts | Grow within our Risk Framework • Driving a strong risk management culture • Asset quality/charge-offs • Year-over-year performance relative to established risk metrics | Grow in a sustainable manner • Focused sustainability leadership in support of strategy • Being a great place to work • Equality and economic opportunity • Supporting our communities |
II. Market Pay Practice and Governance
| • | CEO pay and compensation practices at our primary competitor and leading financial institution peer groups are reviewed at least annually for pay-for-performance analysis and perspectives on the global financial services industry. |
II. Market Pay Practice and Governance
| • | A detailed review of market compensation benchmarks is conducted for our primary competitors for each named executive officer role. |
II. Market Pay Practice and Governance
| • | While these detailed reviews provide the Committee with market context, there is no formulaic benchmarking. |
II. Market Pay Practice and Governance
| • | The Committee reviews performance metrics and scorecards for the CEO and each named executive officer. The CEO also provides perspective on performance and pay for our other named executive officers. |
II. Market Pay Practice and Governance
| • | The Committee’s independent compensation consultant, Farient Advisors, provides perspectives on company performance, governance, and market pay practices for our named executive officers as an input into our compensation decisions. |
III. Evaluation and Pay Decisions
III. Evaluation and Pay Decisions Evaluation and pay decisions begin with a robust and detailed review of performance results aligned with the four tenets of Responsible Growth. The evaluation considers the “What,” which includes an evaluation of performance against scorecard metrics, and the “How” which includes the manner in which results, both financial and non-financial, were achieved. Metrics are reviewed on an absolute basis against the scorecard and key metrics are also reviewed on a relative basis against primary competitors. This metric-driven evaluation drives the preliminary pay discussion. After the Committee has completed its robust and metric-driven performance evaluation to determine preliminary pay, the Committee weighs additional considerations such as market and governance practices, scope of role, experience, and prior year compensation to help inform the final total compensation determination. The Committee believes its use of business judgment and discretion, structured within the framework and governance of the tenets of Responsible Growth, is in the best interests of our shareholders, customers and clients, employees, and the communities we serve. This enables the Committee to appropriately respond to the complexities of internal and external factors when determining performance year compensation, including the complexity of operating a business the size of Bank of America and the regulatory framework in which the company operates. Compensation decisions are generally determined on a year-over-year basis without preset target levels of total compensation. Once performance year total compensation is determined for each named executive officer, the Committee applies the variable pay mix, which includes a majority of pay to be delivered over the long-term and subject to risk management features. See “Executive compensation program features” and “Compensation risk management features” on pages 67 and 69. The Committee’s performance year total compensation recommendations are then subject to a multi-step review and approval process outlined below.
c. Individual performance and pay rationale highlights
c. Individual performance and pay rationale highlights Material factors considered in the Committee’s and Board’s assessment of individual performance and pay rationale for 2023 include: Brian T. Moynihan Chair of the Board and Chief Executive Officer Mr. Moynihan has served as the Chief Executive Officer of Bank of America Corporation since January 2010 and as Chair of our Board since October 2014, and is chair of our Global Diversity & Inclusion Council. He continues to be recognized globally as a leader in the financial services industry.
c. Individual performance and pay rationale highlights
| HIGHLIGHTS OF PAY RATIONALE AND PERFORMANCE | | | • Strong revenue and net income performance in 2023 on an absolute basis and relative to peers • Organic growth across all business segments with strong client engagement across digital platforms • TSR outperformed the KBW Bank Index on a 1, 3, 5 and 10-year basis | | | • Despite overall strong performance in 2023, reported net income was lower than 2022 and TSR was lower than primary competitors • Unwavering focus on growing responsibly with a focus on sustainability • Total compensation of $29.0 million is down 3% vs. 2022 | | | | ● Salary $1.5M ● TRSU $5.50M ● CRSU $8.25M ● PRSU $13.75M |
ADDITIONAL PERFORMANCE HIGHLIGHTS
| HIGHLIGHTS OF PAY RATIONALE AND PERFORMANCE | | | • Drove expense-discipline initiatives across the company in 2023 | | | • Navigated complex interest rate environment, sustaining regulatory capital and liquidity levels exceeding regulatory requirements • Completed second full year as CFO; primary peer benchmark data considered • Total compensation of $12.0 million is up 14% vs. 2022 | | | | ● Salary $1.0M ● TRSU $3.85M ● Cash $3.30M ● PRSU $3.85M |
GROW IN A SUSTAINABLE MANNER
| HIGHLIGHTS OF PAY RATIONALE AND PERFORMANCE | | | • Strong business performance across business lines, in complex rate environment | | | • Drove market share growth and strong client engagement metrics and business areas received extensive industry recognition • Role expanded to include Global Transaction Services and Enterprise Payments in June 2023 • Total compensation of $14.5 million is up 4% vs. 2022 | | | | ● Salary $1.0M ● TRSU $4.725M ● Cash $4.05M ● PRSU $4.725M |
GROW IN A SUSTAINABLE MANNER
| HIGHLIGHTS OF PAY RATIONALE AND PERFORMANCE | | | • Achieved record sales and trading revenue with zero trading loss days in 2023 | | | • Outperformed primary competitors, gaining revenue market share • New institutional client relationships increased 11% from 2022 • Total compensation of $21.0 million is up 11% vs. 2022 | | | | ● Salary $1.0M ● TRSU $7.0M ● Cash $6.0M ● PRSU $7.0M |
GROW IN A SUSTAINABLE MANNER
| HIGHLIGHTS OF PAY RATIONALE AND PERFORMANCE | | | • Delivered strong revenue and net income growth in 2023; highest ever Global Corporate Banking revenue of $10.7B, up 14% from 2022 | | | • Average Global Corporate Banking deposits of $273 billion, up 9% year-over-year • Increased Investment Banking market share to #3 globally, in a challenging market (Dealogic) • Total compensation of $16.5 million is up 5% vs. 2022 | | | | ● Salary $1.0M ● TRSU $5.425M ● Cash $4.65M ● PRSU $5.425M |
GROW IN A SUSTAINABLE MANNER
| • | Continued to support the company’s long-term environmental commitments |
a. 2023 Performance year total compensation decisions
| Performance Year Total Compensation | | | | | | | Name | 2021 ($) | 2022 ($) | 2023 ($) | % Change 2023 to 2022 | 2023 Pay rationale | | Brian T. Moynihan | 32,000,000 | 30,000,000 | 29,000,000 | (3%) | See page 62 | | Alastair M. Borthwick | 11,000,000 | 10,500,000 | 12,000,000 | 14% | See page 63 | | Dean C. Athanasia | 15,000,000 | 13,900,000 | 14,500,000 | 4% | See page 63 | | James P. DeMare | 18,000,000 | 19,000,000 | 21,000,000 | 11% | See page 64 | | Matthew M. Koder | 20,000,000 | 15,700,000 | 16,500,000 | 5% | See page 64 |
a. 2023 Performance year total compensation decisions
| Name | Base salary ($) | Annual cash incentive ($) | Cash-settled restricted stock units ($) | Performance restricted stock units ($) | Time-based restricted stock units ($) | Total 2023 compensation ($) | | Brian T. Moynihan | 1,500,000 | 0 | 8,250,000 | 13,750,000 | 5,500,000 | 29,000,000 | | Alastair M. Borthwick | 1,000,000 | 3,300,000 | 0 | 3,850,000 | 3,850,000 | 12,000,000 | | Dean C. Athanasia | 1,000,000 | 4,050,000 | 0 | 4,725,000 | 4,725,000 | 14,500,000 | | James P. DeMare | 1,000,000 | 6,000,000 | 0 | 7,000,000 | 7,000,000 | 21,000,000 | | Matthew M. Koder | 1,000,000 | 4,650,000 | 0 | 5,425,000 | 5,425,000 | 16,500,000 |
b. Management team stock award
| • | Enhancing leadership stability in the organization over the long-term following management team changes announced in 2021, Mr. DeMare’s role in the success of the company’s reorganization, and the extremely competitive labor market experienced in 2022. |
b. Management team stock award
| • | The award has a back-loaded 4-year vesting period with 50% vesting in February 2026 and 50% vesting in February 2027. To receive the full benefit of this award, Mr. DeMare must remain continuously employed by the company during the 4-year vesting period. The Committee believes that this future vesting serves as an additional retention mechanism which is critical to the stability of Global Markets. |
b. Management team stock award
| The Compensation and Human Capital Committee did not grant any one-time equity awards to named executive officers in February 2024 for 2023 performance. For a description of our philosophy on one-time awards see “Philosophy on one-time awards” on page 56. |
a. Executive pay components & variable pay mix
a. Executive pay components & variable pay mix Our Compensation and Human Capital Committee determines the pay for our named executive officers for each performance year. Our pay-for-performance structure is designed to emphasize variable pay and help motivate our executives to deliver sustained shareholder value and Responsible Growth. Consistent with prior years, restricted stock units are divided into the following components: annual cash-settled (CEO only), time-based and performance-based. The following charts provide an overview of the 2023 pay components and 2023 variable pay mix for our named executive officers, including the vesting, performance, and settlement standards that provide a multi-year look back on 2023 achievements.
a. Executive pay components & variable pay mix
| Performance Year 2023 Pay Components | | | Cash Pay Components | | | Description | How it pays | | Base Salary • Determined based on job scope, experience, and market comparable positions; provides fixed income to attract and retain executives and balance risk-taking | • Semi-monthly cash payment through 2023 | | Annual cash incentive—except CEO • Provides short-term variable pay for the performance year for non-CEO executives | • Single cash payment in February 2024 | | Restricted Stock Pay Components | | | Description | How it pays | | Annual cash-settled restricted stock units (annual CRSUs)—CEO only | | | • Track stock price performance over 1-year vesting period • Vest in 12 equal installments from March 2024 – February 2025 | • Granted in February 2024 • Cash-settled upon vesting | | Performance restricted stock units (PRSUs) | | | • Vest based on future achievement of specific tax-normalized return on assets (ROA) and growth in adjusted tangible book value (TBV) standards over 3-year performance period • Track company and stock price performance • Encourage sustained earnings during the performance period; future adverse performance below these standards will decrease the amount paid | • Granted in February 2024 • If performance standards are achieved, grants will be re-earned at the end of the performance period (2026) • 100% is the maximum that can be re-earned • If both threshold standards are not achieved, the entire award is forfeited • Stock-settled to the extent re-earned | | See “Results for performance restricted stock units” on page 71 for the vesting and value of prior awards | | | Time-based restricted stock units (TRSUs) | | | • Track stock price performance over 4-year vesting period • Align with sustained longer-term stock price performance | • Granted in February 2024 • Vests in four equal annual installments beginning in February 2025 • 100% stock-settled for our CEO upon vesting • 50% stock-settled and 50% cash-settled upon vesting for other named executive officers |
a. Executive pay components & variable pay mix
| Performance Year 2023 Variable Pay Mix | | • A majority of variable pay is delivered as equity-based awards that reflect the balance between short-term and long-term results. • We changed the proportion of equity-based and annual cash awards for named executive officers, other than the CEO, for 2023 pay decisions in order to further drive alignment with shareholders over the long-term. • For NEOs other than the CEO, the percentage of variable pay delivered in TRSUs and PRSUs has been increased by 10%, with a 10% reduction in annual cash. Accordingly, 70% of variable pay for these executives will now be delivered over the long-term. • CEO variable pay mix is unchanged with 100% delivered in equity-based awards and 70% delivered over the long-term. • The charts below illustrate the variable pay mix for our CEO and other named executive officers. |
b. Standards for performance restricted stock units
b. Standards for performance restricted stock units Re-earning the PRSUs granted in February 2024 (based on 2023 performance) requires the company to meet average ROA and average adjusted TBV growth standards (tax-normalized) over a three-year performance period from 2024-2026. The Committee made no change to the standards for performance year 2023 PRSU awards. Under a hypothetical scenario, if our 2023 ending assets of $3.2 trillion remained constant during the performance period, our company would need to earn $77.1 billion in aggregate net income from 2024-2026 to achieve the PRSU 80 bps ROA standard. On an annualized basis, this equals approximately $25.7 billion in earnings which is higher than reported net income in seven of the last twelve years. These performance metrics and standards encourage the achievement of sustained shareholder value and Responsible Growth. PRSUs are forfeited if results are below both minimum standards. PRSUs granted since 2017 provide no upside payout opportunity (100% is the maximum that can be re-earned for these awards). For any portion of the PRSU standards achieved, payment will be made after the end of the performance period. The performance year 2023 PRSU standards are outlined below:
b. Standards for performance restricted stock units
| Three-year average ROA (tax-normalized)(1) (50% weighting) | | Three-year average growth in adjusted TBV(2) (50% weighting) | | | Standard | % Earned | Standard | % Earned | | <50bps | 0% | <5.25% | 0% | | 50bps | 33 (1)⁄3% | 5.25% | 33 (1)⁄3% | | 65bps | 66 (2)⁄3% | 7.00% | 66 (2)⁄3% | | ≥80bps | 100% | ≥8.50% | 100% |
b. Standards for performance restricted stock units
Note: Any results achieved above 33(1)⁄3% will be interpolated on a straight-line basis between the two nearest standards.
b. Standards for performance restricted stock units
| (1) Three-year average ROA (tax-normalized) means the average “return on assets” for the three calendar years in the performance period. For this purpose, “return on assets” will be determined at the conclusion of each year based on the generally accepted accounting principles (GAAP) definition and, to the extent necessary, normalized to exclude the material effects of changes in the Internal Revenue Code of 1986 and related regulations adopted after the first day of the performance period. |
b. Standards for performance restricted stock units
| (2) Three-year average growth in adjusted TBV means the average year-over-year percentage change in “adjusted tangible book value” for the three calendar years in the performance period. For this purpose, “adjusted tangible book value” for each year will equal our total common shareholders’ equity, less (a) the cumulative impact of any capital actions approved by our company’s Board and completed by our company during the performance period, and less (b) the sum of the carrying value of: (i) goodwill and (ii) intangible assets excluding mortgage servicing rights; adjusted for (iii) deferred tax liabilities directly related to: (i) and (ii). Each year-over-year percentage change is measured after the conclusion of each calendar year using the beginning balance as of January 1 and the ending balance as of December 31 of that year and, to the extent necessary, will be normalized to exclude the material effects of changes in the Internal Revenue Code of 1986 and related regulations adopted after the first day of the performance period. |
b. Standards for performance restricted stock units
| 68 | BANK OF AMERICA |
i. Pay practices
| What We Do | | Pay for performance and allocate individual awards based on actual results and how results were achieved | | | | Use balanced, risk-adjusted performance measures | | | | Review feedback from independent control functions in performance evaluations and compensation decisions | | | | Provide appropriate mix of fixed and variable pay to reward company, line of business, and individual performance | | | | Defer a majority of variable pay as equity-based awards | | | | Apply robust clawback features to all executive officer variable pay | | | | Require stock ownership and retention to retirement of a significant portion of equity-based awards | | | | Engage with shareholders on governance and compensation | | | | Prohibit hedging and speculative trading of company securities | | | | Grant equity-based awards on a pre-established date to avoid any appearance of coordination with the release of material non-public information | | | | Prohibit pledging of equity-based awards | | What We Don’t Do | | Change in control agreements for executive officers | | | | Severance agreements for executive officers | | | | Multi-year guaranteed incentive awards for executive officers | | | | Severance benefits to our executive officers exceeding two times base salary and bonus without shareholder approval per our policy | | | | Accrual of additional retirement benefits under any supplemental executive retirement plans | | | | Excise tax gross-ups upon change in control | | | | Discounting, reloading, or repricing stock options without shareholder approval | | | | Single-trigger vesting of equity-based awards upon change in control | | | | Adjust PRSU results for the impact of litigation, fines, and penalties or non-tax impairment charges |
i. Pay practices
Additionally, it has not been our policy to provide for the accelerated vesting of equity awards upon an employee’s voluntary resignation to enter government service. The “Compensation governance and risk management” discussion beginning on page 34 contains more information about our Compensation Governance Policy and our compensation risk management practices. That section describes our Chief Risk Officer’s review and certification of our incentive compensation programs and our Chief Audit Executive’s risk-based review of our incentive plans. We also describe the extent to which our CEO participates in determining executive officer compensation, and the role of Farient Advisors, the Committee’s independent compensation consultant.
a. Results for performance restricted stock units
a. Results for performance restricted stock units PRSUs have been a component of our executive compensation program since 2011. PRSUs require recipients to re-earn awards over the performance period based on achievement of established performance standards and help align management with shareholder interests. Since 2013, PRSUs have been based 50% on three-year average ROA and 50% on three-year average growth in adjusted TBV standards. Our practice is not to make discretionary adjustments to PRSU results for the impact of legacy litigation, fines, and penalties, or impairment charges, which have contributed to outcomes for PRSU payouts since their introduction. The 2021 PRSUs completed in 2023 were re-earned at 100% of the target opportunity based on ROA results of 92 bps and adjusted TBV results of 11.09% (compared to 100% target opportunity based on 2021 PRSU performance standards set at ROA results of ≥ 80 bps and TBV results of ≥ 8.5%)(1). We did not adjust the calculation of these performance metrics to reflect the FDIC special assessment and BSBY cessation charges in fourth quarter 2023. See the description of the 2021 PRSUs and vesting terms following the “Grants of plan-based awards table” on page 74 of our 2022 proxy statement. The maximum payout opportunity is 100% for all outstanding awards. The award terms for these PRSUs provide for the calculation of performance results at the conclusion of each calendar year in the performance period. As a result, the performance results above may differ from the results reported under GAAP in our company’s audited financial statements.
a. Results for performance restricted stock units
| (1) The three-year average ROA and three-year average growth in adjusted TBV results for the 2021 PRSUs were calculated as follows: |
a. Results for performance restricted stock units
Three-year Average ROA was the average “return on assets” for the three calendar years in the performance period. For this purpose, “return on assets” was determined at the conclusion of the year based on the generally accepted accounting principles (GAAP) at the conclusion of each year definition and, to the extent necessary, normalized to exclude the material effects of changes in the Internal Revenue Code of 1986 and related regulations adopted after the first day of the performance period. Three-year Average Growth in Adjusted TBV was the average year-over-year percentage change in “adjusted tangible book value” for the three calendar years in the performance period. For this purpose, “adjusted tangible book value” for each year equaled our total common shareholders’ equity, less (a) the impact of any capital actions approved (or not objected to) by the Federal Reserve Board and/or approved by our company’s Board, and less (b) the sum of the carrying value of: (i) goodwill and (ii) intangible assets excluding mortgage servicing rights; adjusted for (iii) deferred tax liabilities directly related to: (i) and (ii). Each year-over-year percentage change was measured after the conclusion of each calendar year using the beginning balance as of January 1 and the ending balance as of December 31 of that year and, to the extent necessary, was normalized to exclude the material effects of changes in the Internal Revenue Code of 1986 and related regulations adopted after the first day of the performance period.
a. Results for performance restricted stock units
| 2024 PROXY STATEMENT | 71 |
b. 2023 Competitor group
b. 2023 Competitor group Our Compensation and Human Capital Committee periodically reviews compensation practices of competitors to evaluate market trends, pay levels, and relative performance in executive compensation, but without any formulaic benchmarking. The Committee constructs a peer group that best reflects the unique complexity of our business. Given our size and scale, we consider five primary competitors and eleven leading financial institutions. All U.S. peers are used for CEO pay-for-performance benchmarking analysis:
Summary compensation table
Summary compensation table The following table shows compensation paid, accrued, or awarded with respect to our named executive officers during the years indicated:
2023 Summary compensation table(1)
2023 Summary compensation table(1)
2023 Summary compensation table(1)
| Name and principal position(2) | Year | Salary ($)(3) | Bonus ($)(4) | Stock awards ($)(5) | Non-equity incentive plan compensation ($) | Change in pension value and nonqualified deferred compensation earnings ($)(6) | All other compensation ($)(7) | Total ($) | | Brian T. Moynihan Chair and Chief Executive Officer | 2023 | 1,500,000 | 0 | 25,728,076 | 0 | 955,726 | 387,390 | 28,571,192 | | | 2022 | 1,500,000 | 0 | 27,629,501 | 0 | 572,826 | 475,176 | 30,177,503 | | | 2021 | 1,500,000 | 0 | 21,395,424 | 0 | 565,990 | 267,755 | 23,729,169 | | Alastair M. Borthwick Chief Financial Officer | 2023 | 1,000,000 | 3,300,000 | 4,939,890 | 0 | 2,671 | 53,413 | 9,295,974 | | | 2022 | 1,000,000 | 3,800,000 | 7,757,129 | 0 | 0 | 44,808 | 12,601,937 | | | 2021 | 666,667 | 4,133,333 | 6,114,076 | 0 | 1,327 | 41,470 | 10,956,873 | | Dean C. Athanasia President, Regional Banking | 2023 | 1,000,000 | 4,050,000 | 6,707,860 | 0 | 89,734 | 52,815 | 11,900,409 | | | 2022 | 1,000,000 | 5,160,000 | 14,440,740 | 0 | 0 | 49,621 | 20,650,361 | | | 2021 | 1,000,000 | 5,600,000 | 5,614,633 | 0 | 0 | 47,859 | 12,262,492 | | James P. DeMare President, Global Markets | 2023 | 1,000,000 | 6,000,000 | 14,681,816 | 0 | 0 | 46,232 | 21,728,048 | | | 2022 | 1,000,000 | 7,200,000 | 10,431,343 | 0 | 0 | 93,145 | 18,724,488 | | | 2021 | 666,667 | 5,200,000 | 10,311,814 | 0 | 0 | 41,369 | 16,219,850 | | Matthew M. Koder President, Global Corporate & Investment Banking | 2023 | 1,000,000 | 4,650,000 | 7,643,866 | 0 | 0 | 323,362 | 13,617,228 | | | 2022 | 1,000,000 | 5,880,000 | 11,634,954 | 0 | 0 | 2,101,803 | 20,616,757 | | | 2021 | 666,667 | 5,800,000 | 19,205,303 | 0 | 0 | 40,054 | 25,712,024 |
2023 Summary compensation table(1)
| (1) SEC rules require the “Summary compensation table” to include in each year’s amount the aggregate grant date fair value of stock awards granted during the year. Typically, we grant stock awards early in the year as part of total year-end compensation awarded for prior year performance. As a result, the amounts for stock awards generally appear in the “Summary compensation table” for the year after the performance year upon which they were based, and therefore the “Summary compensation table” does not fully reflect our Compensation and Human Capital Committee’s view of its pay-for-performance executive compensation program for a particular performance year. For example, amounts shown as 2023 compensation in the “Stock awards” column include stock awards granted in February 2023 for 2022 performance, as well as other stock awards granted during 2023 that are not part of performance year 2023 compensation. See “Compensation discussion and analysis” on page 53 for a discussion about how the Committee viewed its 2023 compensation decisions for the named executive officers. |
2023 Summary compensation table(1)
| (2) All listed named executive officer positions are those held as of December 31, 2023. |
2023 Summary compensation table(1)
| (3) Includes any amounts voluntarily deferred under our qualified 401(k) plan and our nonqualified deferred compensation plan. See “Nonqualified deferred compensation table” on page 82. |
2023 Summary compensation table(1)
| (4) Amounts reflect annual cash incentive awards received by the named executive officers for performance in the applicable year. |
2023 Summary compensation table(1)
| (5) Amounts shown are the aggregate grant date fair value of CRSUs, PRSUs, and TRSUs granted in the year indicated. Grants of stock-based awards (excluding CRSUs) include the right to receive cash dividends only if and when the underlying award becomes vested and payable. The grant date fair value is based on the closing price of our common stock on the applicable grant date ($35.56 on February 15, 2023). For the PRSUs granted in 2023, the actual number of PRSUs earned (0% up to the maximum level of 100%) will depend on our company’s future achievement of specific ROA and growth in adjusted TBV standards (tax-normalized) over a three-year performance period ending December 31, 2025. Values in the “Stock awards” column assume that 100% (the maximum level) of the PRSUs granted would vest as the probable outcome for purposes of determining the grant date fair value. The grant date fair value for PRSUs and TRSUs granted in 2023 includes a discount rate of approximately 12% to reflect the impact of post-vesting transfer restrictions on the value of these awards. The grant date fair value for the PRSUs and TRSUs granted in 2022 includes a discount of approximately 12% and 13%, respectively, and the grant date fair value for the PRSUs and TRSUs granted in 2021 includes a discount of approximately 14% and 15%, respectively, to reflect the impact of post-vesting transfer restrictions on the value of these awards. No discount was applied to awards of CRSUs, or to the TRSUs granted to Mr. DeMare described in footnote 3 to the “Grants of plan-based awards table” on page 76, to Messrs. Borthwick and Athanasia described in footnote 3 to the “Grants of plan-based awards table” on page 70 of the 2023 proxy statement, and to Messrs. Borthwick, DeMare and Koder described in footnotes 3, 4 and 5 to the “Grants of plan-based awards table” on page 73 of the 2022 proxy statement. |
2023 Summary compensation table(1)
| (6) The following table shows the change in pension value and the amount of any above-market earnings on nonqualified deferred compensation for the named executive officers: |
2023 Summary compensation table(1)
| Name | Change in pension value ($) | Above-market earnings on nonqualified deferred compensation ($) | | Brian T. Moynihan | 816,598 | 139,128 | | Alastair M. Borthwick | 2,671 | 0 | | Dean C. Athanasia | 89,734 | 0 | | James P. DeMare | 0 | 0 | | Matthew M. Koder | 0 | 0 |
2023 Summary compensation table(1)
| 74 | BANK OF AMERICA |
2023 Summary compensation table(1)
| The “Change in pension value” equals the change in the actuarial present value of all pension benefits from December 31, 2022 to December 31, 2023. For this purpose, in accordance with SEC rules, the present value was determined using the same assumptions applicable for valuing pension benefits for purposes of our financial statements. See “Pension benefits table” on page 81. |
2023 Summary compensation table(1)
| Effective June 30, 2012, Bank of America froze pension plan accruals under all of its U.S. pension plans for all employees. As a result, the named executive officers are not accruing any additional pension benefits with respect to any compensation or service after June 30, 2012. |
2023 Summary compensation table(1)
| For Mr. Moynihan, the amount reported above under “Change in pension value” is primarily the result of annuity benefits under a legacy supplemental retirement plan frozen since 2005. The monthly annuity benefit amount has not changed since the supplemental retirement plan was frozen. However, the present value of the benefit increases each year because he is one year older. |
2023 Summary compensation table(1)
| The above-market earnings on nonqualified deferred compensation result from Mr. Moynihan’s participation in a pre-1998 legacy FleetBoston deferred compensation plan. See “Nonqualified deferred compensation table” on page 82. |
2023 Summary compensation table(1)
| (7) The following table shows amounts included in the “All other compensation” column for each named executive officer in 2023. This column includes the perquisites received by a named executive officer to the extent the total value of such perquisites was equal to or exceeded $10,000, as required under SEC rules. |
Grants of plan-based awards table
Grants of plan-based awards table The following table shows additional information regarding CRSUs, PRSUs, and TRSUs granted to our named executive officers in 2023. For information about equity-based awards granted to our named executive officers in February 2023 for 2022 performance, see “Compensation discussion and analysis” beginning on page 53.
Grants of plan-based awards in 2023
Grants of plan-based awards in 2023
Grants of plan-based awards in 2023
| Name | Award type | Grant date | Approval date | Estimated future payouts under equity incentive plan awards(1) | | | All other stock awards: number of shares of stock or units (#) | Grant date fair value of stock awards ($)(2) | | | | | | Threshold (#) | Target (#) | Maximum (#) | | | | Brian T. Moynihan | CRSU | 2/15/2023 | 2/1/2023 | — | — | — | 237,303 | 8,438,495 | | | PRSU | 2/15/2023 | 2/1/2023 | 131,834 | 395,504 | 395,504 | — | 12,349,692 | | | TRSU | 2/15/2023 | 2/1/2023 | — | — | — | 158,202 | 4,939,889 | | Alastair M. Borthwick | PRSU | 2/15/2023 | 1/31/2023 | 26,367 | 79,101 | 79,101 | — | 2,469,945 | | | TRSU | 2/15/2023 | 1/31/2023 | — | — | — | 79,101 | 2,469,945 | | Dean C. Athanasia | PRSU | 2/15/2023 | 1/31/2023 | 35,803 | 107,411 | 107,411 | — | 3,353,930 | | | TRSU | 2/15/2023 | 1/31/2023 | — | — | — | 107,411 | 3,353,930 | | James P. DeMare | PRSU | 2/15/2023 | 1/31/2023 | 49,958 | 149,876 | 149,876 | — | 4,679,908 | | | TRSU | 2/15/2023 | 1/31/2023 | — | — | — | 149,876 | 4,679,908 | | | TRSU(3) | 1/31/2023 | 1/31/2023 | — | — | — | 150,000 | 5,322,000 | | Matthew M. Koder | PRSU | 2/15/2023 | 1/31/2023 | 40,799 | 122,399 | 122,399 | — | 3,821,933 | | | TRSU | 2/15/2023 | 1/31/2023 | — | — | — | 122,399 | 3,821,933 |
Grants of plan-based awards in 2023
| (1) The number of PRSUs reported above assumes that the performance standard achieved is at threshold, target, or maximum for both the three-year average ROA, and average growth in adjusted TBV performance metrics; see “PRSUs” on page 77. There is no upside payout opportunity for this award: the target amount is the maximum that can be re-earned. |
Grants of plan-based awards in 2023
| (2) The number of CRSUs, PRSUs, and TRSUs granted in 2023 (excluding the award described in footnote 3 below, which was granted as a fixed number of shares) was calculated by dividing the original award value determined by our Compensation and Human Capital Committee by the average closing price of our common stock for the 10-day period ending on, and including, the grant date. Because the grant date fair value for these awards (excluding the award described in footnote 3) is based on the closing price of our common stock on the grant date ($35.56) on February 15, 2023, the dollar amount of the grant date fair value will differ slightly from the original award value determined by our Compensation and Human Capital Committee. The grant date fair value of the PRSUs and the TRSUs granted in 2023 (excluding the TRSUs granted to Mr. DeMare described in footnote 3 below) includes a discount of approximately 12% to reflect the impact of post-vesting transfer restrictions on the value of these awards. For additional information about the applicable assumptions for determining the grant date fair value of restricted stock unit awards, see footnote 5 to the “Summary compensation table”. |
Grants of plan-based awards in 2023
| (3) As described in more detail on page 66 in “Management team stock award,” Mr. DeMare was granted an award of 150,000 restricted stock units in February 2023, which vests in two equal annual installments beginning February 15, 2026. While the award was granted to Mr. DeMare on February 15, 2023, SEC rules require disclosure of the grant date in accordance with FASB ASC Topic 718. Under ASC 718, the grant date is January 31, 2023, and the grant date fair value is based on the closing price of our common stock on that day ($35.48). This award does not provide Qualifying Termination protection. For more information on this award, see “TRSUs” on page 78. |
PRSUs
PRSUs
PRSUs
| • | The PRSUs granted in February 2023 are re-earned based on ROA and growth in adjusted TBV standards (tax-normalized) over a three-year performance period from January 1, 2023 through December 31, 2025. The following highlights the performance metrics and standards of these PRSU awards: |
PRSUs
| • | “Three-year Average ROA (tax-normalized)” means the average “return on assets” for the three calendar years in the performance period. For this purpose, “return on assets” will be determined at the conclusion of each year based on the generally accepted accounting principles (GAAP) definition and, to the extent necessary, normalized to exclude the material effects of changes in the Internal Revenue Code of 1986 and related regulations adopted after the first day of the performance period. |
PRSUs
| • | “Three-year Average Growth in Adjusted TBV” means the average year-over-year percentage change in “adjusted tangible book value” for the three calendar years in the performance period. For this purpose, “adjusted tangible book value” for each year will equal our total common shareholders’ equity, less (a) the cumulative impact of any capital actions approved by our company’s Board and completed by Bank of America during the performance period, and less (b) the sum of the carrying value of: (i) goodwill and (ii) intangible assets excluding mortgage servicing rights; adjusted for (iii) deferred tax liabilities directly related to (i) and (ii). Each year-over-year percentage change is measured after the conclusion of each calendar year using the beginning balance as of January 1 and the ending balance as of December 31 of that year and, to the extent necessary, will be normalized to exclude the material effects of changes in the Internal Revenue Code of 1986 and related regulations adopted after the first day of the performance period. |
PRSUs
| • | The awards are equally weighted with 50% based on ROA standards (tax-normalized) and 50% based on adjusted TBV growth standards. The portion of the PRSUs earned for the performance period depends on the level of our average ROA and adjusted TBV growth. No PRSUs will be earned if results are below the minimum standards. Results above the 33 (1)⁄3% minimum standard will be interpolated on a straight-line basis between the two nearest standards. |
PRSUs
| Three-year average ROA (tax-normalized) (50% weighting) | | Three-year average growth in adjusted TBV (50% weighting) | | | Standard | % Earned | Standard | % Earned | | <50bps | 0% | <5.25% | 0% | | 50bps | 33 (1)⁄3% | 5.25% | 33 (1)⁄3% | | 65bps | 66 (2)⁄3% | 7.00% | 66 (2)⁄3% | | ≥80bps | 100% | ≥8.50% | 100% |
PRSUs
| • | Any PRSUs earned for the performance period will be settled on March 1, 2026 in shares of our common stock, net of applicable taxes. There is no upside payout opportunity for this award: 100% is the maximum that can be re-earned. |
PRSUs
| • | Cash dividend equivalents, if any, are accrued and paid only if and when the underlying units become vested and payable. |
PRSUs
| • | To encourage sustainable, long-term performance, PRSUs are subject to performance-based cancellation, and payment on a settlement date is specifically conditioned on our company or the applicable segments remaining profitable over the performance period. If a loss is determined to have occurred, our Compensation and Human Capital Committee, together with key control functions, will review losses and the executive officer’s accountability. The Committee will then make a final determination to either take no action or to cancel all or a portion of the part of the executive officer’s award otherwise payable as of the applicable settlement date. All such determinations will be final and binding. |
PRSUs
| • | The following chart shows how the PRSUs are treated if a named executive officer terminates employment: |
PRSUs
| Reason for termination | Impact on vesting and payment date | | Death | Full vesting at the maximum level; immediate payment | | Disability | Continue to earn and pay per schedule, subject to return on assets and adjusted TBV performance, covenants,(1) and performance-based cancellation | | Involuntary for cause(2) | Canceled | | Involuntary without cause or voluntary | Canceled, unless eligible for Qualifying Termination | | Qualifying Termination(3) | Continue to earn and pay per schedule, generally provided the executive officer does not subsequently work for a competitive business and annually provides a written certification of compliance and subject to return on assets and adjusted TBV performance, covenants,(1) and performance-based cancellation |
PRSUs
| (1) Covenants for vesting purposes are nonsolicitation, detrimental conduct, and compliance with anti-hedging/derivative transactions policies. Awards also are subject to recoupment: (i) under our Incentive Compensation Recoupment Policy, which was updated in September 2023 to reflect the SEC’s new final rules implementing Section 954 of the Dodd-Frank Act, and (ii) in case of violation of covenants regarding detrimental conduct and anti-hedging/derivative transactions policies. |
PRSUs
| (2) For purposes of these awards, “cause” is generally defined as a termination of an employee’s employment if it occurs in conjunction with a determination that the employee has: (i) committed an act of fraud or dishonesty in the course of his employment; (ii) been convicted of (or pleaded no contest with respect to) a crime constituting a felony or a crime of |
PRSUs
| 2024 PROXY STATEMENT | 77 |
PRSUs
| comparable magnitude under applicable law (as determined by Bank of America in its sole discretion); (iii) committed an act or omission which causes the employee or Bank of America or its subsidiaries to be in violation of federal or state securities laws, rules or regulations, and/or the rules of any exchange or association of which Bank of America or its subsidiaries is a member, including statutory disqualification; (iv) failed to perform job duties where such failure is injurious to Bank of America or any subsidiary, or to Bank of America’s or such subsidiary’s business interests or reputation; (v) materially breached any written policy applicable to employees of Bank of America Corporation and its subsidiaries, including, but not limited to, the Bank of America Corporation Code of Conduct and General Policy on Insider Trading; or (vi) made an unauthorized disclosure of any confidential or proprietary information of Bank of America Corporation or its subsidiaries or has committed any other material violation of Bank of America’s written policies regarding confidential and proprietary information. |
PRSUs
| (3) A Qualifying Termination means any voluntary or involuntary termination (other than for death, disability, or “cause”) after the executive has met certain specified age and/or service requirements. For awards granted before February 15, 2022, the named executive officers must have at least 10 years of service and their age and years of service must add up to at least 60 (sometimes referred to in prior years as “Rule of 60”). For awards granted on or after February 15, 2022, but before February 15, 2024, the named executive officers must have at least 10 years of service and reached at least age 50. For awards granted on or after February 15, 2024, the named executive officers must have at least 10 years of service and reached at least age 55 or must have reached at least age 60. |
Outstanding equity awards as of December 31, 2023
Outstanding equity awards as of December 31, 2023
Outstanding equity awards as of December 31, 2023
| | Stock awards | | | | | Name | Number of shares/ units of stock that have not vested (#) | Market value of shares/ units of stock that have not vested ($)(1) | Equity incentive plan awards: number of unearned shares/ units of stock that have not vested (#) | Equity incentive plan awards: market value of unearned shares/ units of stock that have not vested ($)(1) | | Brian T. Moynihan | 71,274(2) | 2,399,796 | — | — | | | 356,369(3) | 11,998,944 | — | — | | | 95,115(4) | 3,202,522 | 317,048(5) | 10,675,006 | | | 158,202(6) | 5,326,661 | 395,504(7) | 13,316,620 | | | 39,551(8) | 1,331,682 | — | — | | Alastair M. Borthwick | 50,000(9) | 1,683,500 | — | — | | | 78,634(2) | 2,647,607 | — | — | | | 50,000(10) | 1,683,500 | — | — | | | 48,338(4) | 1,627,540 | 64,450(5) | 2,170,032 | | | 50,000(11) | 1,683,500 | — | — | | | 79,101(6) | 2,663,331 | 79,101(7) | 2,663,331 | | Dean C. Athanasia | 49,272(2) | 1,658,988 | — | — | | | 98,544(3) | 3,317,976 | — | — | | | 65,490(4) | 2,205,048 | 87,319(5) | 2,940,031 | | | 150,000(11) | 5,050,500 | — | — | | | 107,411(6) | 3,616,528 | 107,411(7) | 3,616,528 | | James P. DeMare | 50,000(9) | 1,683,500 | — | — | | | 70,391(2) | 2,370,065 | — | — | | | 50,000(10) | 1,683,500 | — | — | | | 34,940(10) | 1,176,430 | — | — | | | 17,470(12) | 588,215 | — | — | | | 189,190(4) | 6,370,027 | — | — | | | 149,876(6) | 5,046,325 | 149,876(7) | 5,046,325 | | | 150,000(13) | 5,050,500 | — | — | | Matthew M. Koder | 50,000(9) | 1,683,500 | — | — | | | 90,388(2) | 3,043,364 | — | — | | | 50,000(10) | 1,683,500 | — | — | | | 44,866(10) | 1,510,638 | — | — | | | 50,000(14) | 1,683,500 | — | — | | | 22,433(12) | 755,319 | — | — | | | 211,020(4) | 7,105,043 | — | — | | | 122,399(6) | 4,121,174 | 122,399(7) | 4,121,174 |
Outstanding equity awards as of December 31, 2023
| (1) Value is based on the closing price of our common stock on December 29, 2023, which was $33.67 per share. |
Outstanding equity awards as of December 31, 2023
| (2) 2021 TRSUs. One-half of the outstanding award vested and was paid on February 15, 2024, one-half is scheduled to vest and be paid on February 15, 2025. |
Outstanding equity awards as of December 31, 2023
| (3) 2021 PRSUs (Performance Period Complete). Represents restricted stock units re-earned at the conclusion of the performance period at 100% of the set performance standard and that were outstanding as of December 31, 2023. These restricted stock units vested and were paid on March 1, 2024. See the description of our company’s performance and satisfaction of the performance measures for the 2021 PRSUs in “Compensation discussion and analysis” beginning on page 53. See also the description of the 2021 PRSUs and vesting terms following “Grants of plan-based awards table” on page 73 of our 2022 proxy statement. |
Outstanding equity awards as of December 31, 2023
| 2024 PROXY STATEMENT | 79 |
Outstanding equity awards as of December 31, 2023
| (4) 2022 TRSUs. One-third of the outstanding award vested and was paid on February 15, 2024, one-third is scheduled to vest and be paid on February 15, 2025, and one-third is scheduled to vest and be paid on February 15, 2026. |
Outstanding equity awards as of December 31, 2023
| (5) 2022 PRSUs (Performance Period Not Complete). Vesting is based on our company’s achievement of specific ROA and growth in adjusted TBV goals over a three-year performance period ending December 31, 2024. The number of PRSUs shown in the table above is based on achievement of maximum performance. See the description of the 2022 PRSUs and vesting terms following “Grants of plan-based awards table” on page 70 of our 2023 proxy statement. |
Outstanding equity awards as of December 31, 2023
| (6) 2023 TRSUs. One-fourth of the outstanding award vested and was paid on February 15, 2024, one-fourth is scheduled to vest and be paid on February 15, 2025, one-fourth is scheduled to vest and be paid on February 15, 2026, and one-fourth is scheduled to vest and be paid on February 15, 2027. |
Outstanding equity awards as of December 31, 2023
| (7) 2023 PRSUs (Performance Period Not Complete). Vesting is based on our company’s achievement of specific ROA and growth in adjusted TBV goals over a three-year performance period ending December 31, 2025. The number of PRSUs shown in the table above is based on achievement of maximum performance. See the description of the 2023 PRSUs and vesting terms following “Grants of plan-based awards table” on page 76. |
Outstanding equity awards as of December 31, 2023
| (8) 2023 CRSUs. These vested and were paid on January 15 and February 15, 2024. |
Outstanding equity awards as of December 31, 2023
| (9) This award is scheduled to vest and be paid on July 24, 2024. |
Outstanding equity awards as of December 31, 2023
| (10) One-half of the outstanding award vested and was paid on February 15, 2024, and one-half is scheduled to vest and be paid on February 15, 2025. |
Outstanding equity awards as of December 31, 2023
| (11) One-half of the outstanding award is scheduled to vest and be paid on February 15, 2025, and one-half is scheduled to vest and be paid on February 15, 2026. |
Outstanding equity awards as of December 31, 2023
| (12) This award is scheduled to vest and be paid on August 15, 2024. |
Outstanding equity awards as of December 31, 2023
| (13) One-half of the outstanding award is scheduled to vest and be paid on February 15, 2026, and one-half is scheduled to vest and be paid on February 15, 2027. |
Outstanding equity awards as of December 31, 2023
| (14) This award is scheduled to vest and be paid on June 1, 2024. |
Outstanding equity awards as of December 31, 2023
The following table shows information regarding the value of restricted stock units that vested during 2023:
Stock vested in 2023
Stock vested in 2023
Stock vested in 2023
| | Stock awards | | | Name | Number of shares acquired on vesting (#)(1) | Value realized on vesting ($)(2) | | Brian T. Moynihan | 667,896 | 22,046,945 | | Alastair M. Borthwick | 241,352 | 8,385,227 | | Dean C. Athanasia | 168,906 | 5,879,807 | | James P. DeMare | 334,013 | 11,582,071 | | Matthew M. Koder | 577,437 | 18,819,897 |
Stock vested in 2023
| (1) This column includes the gross number of CRSUs (Mr. Moynihan only), PRSUs, and/or TRSUs that were settled and paid in cash or stock during 2023 and includes any amounts that were withheld for applicable taxes. The following number of cash-settled units vested for each of our named executive officers: Mr. Moynihan, 229,457; Mr. Borthwick, 50,000; Mr. DeMare, 50,000; and Mr. Koder, 193,885. |
Stock vested in 2023
| (2) The value represents the gross number of shares or units that vested, multiplied by the closing price of our common stock on the applicable vesting date, including the value of shares withheld for applicable taxes. Shares acquired by our named executive officers are subject to our stock ownership and retention requirements, as applicable. These requirements are discussed in “Stock ownership & retention requirements” on page 71. |
Stock vested in 2023
| 80 | BANK OF AMERICA |
Pension benefits table
Pension benefits table The following table provides information regarding the retirement benefits our named executive officers may receive under our defined benefit pension plans in which they participate, all of which have been frozen (meaning that benefits are no longer accruing for compensation or service after the plan freeze date).
Pension benefits in 2023
Pension benefits in 2023
Pension benefits in 2023
| Name | Plan name | Number of years credited service (#)(1) | Present value of accumulated benefit ($)(2) | | Brian T. Moynihan | Legacy Pension Plan(3) | 19.25 | 473,236 | | | Legacy RIAP | 19.25 | 289,450 | | | Legacy Supplemental Retirement Plan | 12.75 | 11,493,300 | | Alastair M. Borthwick | Legacy Pension Plan(3) | 6.83 | 71,011 | | | Legacy Pension Restoration Plan | 6.83 | 1,675 | | Dean C. Athanasia | Legacy Pension Plan(3) | 16.25 | 304,564 | | | Legacy RIAP | 16.25 | 26,322 | | James P. DeMare(4) | N/A | — | — | | Matthew M. Koder(4) | N/A | — | — |
Pension benefits in 2023
| (1) The years of credited service for Messrs. Moynihan, Borthwick, and Athanasia are less than their actual service with us, which at December 31, 2023 was as follows for each named executive officer: 30.75 years for Mr. Moynihan, 18.33 years for Mr. Borthwick, 27.75 years for Mr. Athanasia, 15.17 years for Mr. DeMare, and 12.58 years for Mr. Koder. In addition, Mr. Moynihan’s years of credited service under the Legacy Supplemental Retirement Plan are less than his years of credited service under the pension plan because Mr. Moynihan requested his Legacy Supplemental Retirement Plan be frozen in 2005 (six and a half years before the pension plan was frozen). |
Pension benefits in 2023
| (2) The value of plan benefits reflects the actuarial present value of each named executive officer’s accumulated benefits under the pension plans in which the named executive officer participates. The present value was determined using the same assumptions applicable for valuing pension benefits in our financial statements. See Note—Employee Benefit Plans to the Consolidated Financial Statements for the 2023 fiscal year included in our 2023 Form 10-K. |
Pension benefits in 2023
| (3) The Bank of America Pension Plan includes the Fleet Legacy Pension Plan and the Bank of America Legacy Pension Plan as component plans. Messrs. Moynihan and Athanasia are participants in the legacy Fleet component plan. Mr. Borthwick is a participant in the legacy Bank of America component plan. |
Pension benefits in 2023
| (4) Messrs. DeMare and Koder do not participate in any tax-qualified pension plans or restoration or supplemental retirement plans. |
Pension benefits in 2023
The following describes the material features of our pension plans in which the named executive officers participate. Qualified pension plan. During 2023, Messrs. Moynihan, Borthwick, and Athanasia each participated in one of the legacy components of The Bank of America Pension Plan (Legacy Pension Plan). The component plans are cash balance pension plans where notional cash balance accounts grow based on notional credits. As of June 30, 2012, participants no longer receive compensation credits or years of credited service under the Legacy Pension Plan. Participants in the legacy Fleet component plan continue to receive notional interest credits based on the one-year U.S. Treasury Note yield, subject to a minimum annual rate of 3.25%. Participants in the legacy Bank of America component plan continue to receive notional interest credits based on the 10-year U.S. Treasury Note yield for their post-2007 accounts and notional investment credits based on selected investment choices for their pre-2008 accounts. All participating named executive officers are vested under the Legacy Pension Plan and can receive their cash balance account in a lump-sum, or an actuarial equivalent form of benefit. Nonqualified pension plans. During 2023, certain named executive officers held accounts in one or more of the following:
Pension benefits in 2023
| • | The Bank of America Pension Restoration Plan (Legacy Pension Restoration Plan) |
Pension benefits in 2023
| • | Retirement Income Assurance Plan for Legacy Fleet (Legacy RIAP) |
Pension benefits in 2023
| • | FleetBoston Financial Corporation Supplemental Executive Retirement Plan (Legacy Supplemental Retirement Plan) |
Pension benefits in 2023
The Legacy Pension Restoration Plan and Legacy RIAP provide benefits for qualified pension plan participants whose retirement benefits were reduced due to IRS limits on qualified plans. These plans were frozen, at the same time the qualified plan was frozen, effective June 30, 2012. Each participating named executive officer’s nonqualified pension plan benefits are fully vested and payable as either a lump-sum or annual installments over a period of up to 10 years beginning in a year after termination (other payment options may be available for legacy benefits). Mr. Moynihan’s Legacy Supplemental Retirement Plan benefit is equal to a percentage of final average compensation (based on compensation previously frozen in 2005), reduced by benefits from the legacy Fleet component of the Legacy Pension Plan, and the Legacy RIAP. Mr. Moynihan’s participation in the Legacy Supplemental Retirement Plan was frozen at his request effective December 31, 2005, and he elected this benefit to be payable as a lump-sum payment determined using the actuarial assumptions in effect under the Legacy Pension Plan in 2005.
Pension benefits in 2023
| 2024 PROXY STATEMENT | 81 |
Nonqualified deferred compensation table
Nonqualified deferred compensation table The following table shows information about the participation by each named executive officer in our nonqualified deferred compensation plans.
Nonqualified deferred compensation in 2023
Nonqualified deferred compensation in 2023
Nonqualified deferred compensation in 2023
| Name | Plan name | Executive contributions in 2023 ($) | Aggregate earnings in 2023 ($)(1) | Aggregate withdrawals/ distributions ($) | Aggregate balance at December 31, 2023 ($)(2) | | Brian T. Moynihan | Deferred Compensation Plan | 0 | 159,164 | 0 | 899,989 | | | Legacy Deferred Compensation Plan | 0 | 378,580 | 0 | 3,533,417 | | | Legacy Supplemental Plan | 0 | 507,293 | 0 | 1,677,960 | | Alastair M. Borthwick | Deferred Compensation Plan | 0 | 10,547 | 0 | 220,134 | | Dean C. Athanasia | Deferred Compensation Plan | 0 | 1,398,258 | 0 | 6,002,441 | | | Legacy Deferred Compensation Plan | 0 | 23,303 | 0 | 604,119 | | | Legacy Supplemental Plan | 0 | 7,424 | 0 | 35,784 | | | Legacy ESA Plan | 0 | 48,790 | 0 | 988,872 | | James P. DeMare | Deferred Compensation Plan | 0 | 0 | 0 | 0 | | Matthew M. Koder | Deferred Compensation Plan | 0 | 0 | 0 | 0 |
Nonqualified deferred compensation in 2023
| (1) The Deferred Compensation Plan allows participants to direct their deferrals among the same investment choices as available under The Bank of America 401(k) Plan. The Legacy Deferred Compensation Plan credits pre-1998 deferrals with interest at an annual rate of 12%, which cannot be changed due to the FleetBoston acquisition. Deferrals made under the plan between 1998 and 2001 are credited with interest at an annual rate of 4% and 2002 deferrals receive interest based on the return for the one-year Treasury Bill. The Legacy Supplemental Plan offered participants the following investment options, which posted the corresponding returns for 2023: Columbia Core Bond Fund, 7.17%; Columbia Large Cap Growth Fund, 43.87%; Invesco Equity & Income Fund, 9.99%; and Stable Value Fund, 2.40%. The Legacy ESA Plan credits plan accounts with interest at a rate equal to the prior month’s one-year constant maturity Treasury rate, as determined each month by the Federal Reserve Board, compounded daily. |
Nonqualified deferred compensation in 2023
| (2) The following table identifies amounts that have already been reported as compensation in our “Summary compensation table” for the current or prior years: |
Nonqualified deferred compensation in 2023
| Name | Amount of 2023 contributions and earnings reported as compensation in our “2023 Summary compensation table” ($) | Amounts in “Aggregate balance at December 31, 2023” column reported as compensation in our “Summary compensation tables” for prior years ($) | | Brian T. Moynihan | 139,128 | 1,259,702 | | Alastair M. Borthwick | 0 | 0 | | Dean C. Athanasia | 0 | 220,000 | | James P. DeMare | 0 | 0 | | Matthew M. Koder | 0 | 0 |
Nonqualified deferred compensation in 2023
The following describes the material features of our nonqualified deferred compensation plans in which the named executive officers participate. Deferred compensation plan. Each of our named executive officers is eligible to participate in the Bank of America Deferred Compensation Plan (Deferred Compensation Plan), which is a nonqualified retirement savings plan that allows for deferrals above the IRS limits on qualified plans. Participants may elect to defer up to 50% of base salary and up to 75% of certain eligible incentive awards. Employer contributions made under the plan, if any, when combined with the employer contributions under the 401(k) plan, will not exceed the maximum employer contributions allowable under the 401(k) Plan—$12,500 for matching contributions and $7,500 for annual company contributions. Participants may generally elect to receive their distribution in a lump-sum payment or installments payable up to 15 years. Participants are not subject to U.S. federal income tax on amounts that they deferred or any notional investment earnings (based on elections of the same investment options as under the 401(k) Plan) until those amounts are distributed to them, and we do not take a tax deduction on these amounts until they are distributed. Legacy deferred compensation plan. Messrs. Moynihan and Athanasia each have an account under the FleetBoston Financial Corporation Executive Deferred Compensation Plan No. 2 (Legacy Deferred Compensation Plan), which is a nonqualified retirement savings plan. Prior to being closed to deferrals in 2002, participants could defer base salary and certain bonuses under the plan. Participants can elect payments in a lump-sum or up to 15 annual installments either on or after termination of employment, but not beyond the year in which the participant turns 65.
Nonqualified deferred compensation in 2023
| 82 | BANK OF AMERICA |
Nonqualified deferred compensation in 2023
Legacy supplemental plan. Messrs. Moynihan and Athanasia each have an account under the FleetBoston Financial Corporation Executive Supplemental Plan (Legacy Supplemental Plan), which is a nonqualified retirement savings plan that allowed deferrals above the IRS limits on qualified plans. This plan was closed to contributions in 2004. Payments are made in a lump-sum or up to 15 annual installments beginning in the year of termination of employment or any later year elected by the participant, but not beyond the year in which the participant turns 65. Legacy ESA plan. Mr. Athanasia has a nonqualified deferred compensation account that was established prior to FleetBoston’s merger with Bank of America Corporation and funded by employer contributions (Legacy ESA Plan). This plan was closed to contributions in 2004. Upon his termination of employment, Mr. Athanasia will be paid in equal installments over a one-year restrictive covenant period, unless he terminates due to death or disability.
Potential payments upon termination or change in control
Potential payments upon termination or change in control We do not have any agreements with our named executive officers that provide for cash severance payments upon termination of employment or a change in control. In addition, since 2002, we have maintained the Bank of America Corporation Corporate Policy Regarding Seeking Stockholder Approval of Future Severance Agreements (the Severance Agreement Approval Policy). Under our Severance Agreement Approval Policy, we will not enter into employment or severance agreements with our executive officers that provide severance benefits exceeding two times base salary and bonus (as defined under the Severance Agreement Approval Policy), unless the agreement has been approved by our shareholders.
Potential payments from equity-based awards
Potential payments from equity-based awards Our equity-based awards to our named executive officers include standard provisions that cause awards to vest or be forfeited upon termination of employment, depending on the reason for termination. These provisions for awards granted in 2023 are described in more detail on page 76, and those details can be found for awards granted in prior years in our prior proxy statements. In general, our awards provide for continued payments on the original schedule after certain types of termination of employment, subject to the following conditions, as applicable in individual award agreements:
Potential payments from equity-based awards
| • | In case of a “Qualifying Termination”, the award continues to be paid according to the award’s payment schedule if the executive complies with certain covenants, including not working for a competitive business. A Qualifying Termination means any voluntary or involuntary termination (other than for death, disability, or cause) after the executive has met certain specified age and/or service requirements. For awards granted before February 15, 2022, the named executive officers must have at least 10 years of service and their age and years of service must add up to at least 60 (sometimes referred to in prior years as “Rule of 60”). For awards granted on or after February 15, 2022 but before February 15, 2024, the named executive officers must have at least 10 years of service and reached at least age 50. Currently, each of the named executive officers meets the applicable requirements for a Qualifying Termination. For awards granted on or after February 15, 2024, the named executive officers must have at least 10 years of service and reached at least age 55 or must have reached at least age 60. |
Potential payments from equity-based awards
| • | Awards remain subject to performance-based cancellation prior to payment and may be canceled in whole or in part if losses occur. Awards also can be canceled or recouped if the executive engages in detrimental conduct. Further, under our Incentive Compensation Recoupment Policy, which was updated in September 2023 to reflect the SEC’s final rules implementing Section 954 of the Dodd-Frank Act, the Board can require reimbursement of any incentive compensation paid to an executive officer whose fraud or intentional misconduct causes our company to restate its financial statements and can claw back certain incentive compensation if an accounting restatement is required. |
Potential payments from equity-based awards
Awards to our named executive officers under the BACEP are generally designed to be paid per schedule if an executive’s employment is terminated without “cause” or for “good reason” within two years after a change in control. This change in control treatment is often referred to as “double trigger” vesting, because it requires both: (i) a change in control and (ii) a subsequent involuntary termination (either by our company without “cause” or by the executive for “good reason”). The BACEP does not provide our executive officers “single trigger” vesting upon a change in control. If a named executive officer is terminated for “cause,” our equity-based awards provide that the awards will be forfeited. The following table shows the value of equity awards that would have been payable, subject to the non-compete or compliance with covenants, as applicable, for a termination of employment as of December 31, 2023. For this purpose, restricted stock units were valued at our closing price as of December 29, 2023, which was $33.67 per share. Due to a number of factors that affect the nature and amount of any benefits provided upon termination of employment, any actual amounts paid or distributed may vary from the amounts listed below. Factors that could affect these amounts include the time during the year of any such event, any accrued but unpaid cash dividend equivalents and related interest, and the price of our common stock.
Potential payments from equity-based awards
| 2024 PROXY STATEMENT | 83 |
Potential payments from restricted stock units
Potential payments from restricted stock units
Potential payments from restricted stock units
| | Death | Disability | | Termination with good reason or without cause within two years following change in control(2) | All other terminations except for cause | | Name | Payable immediately ($) | Payable immediately ($) | Payable per award schedule, subject to conditions ($)(1) | Payable per award schedule, subject to conditions ($) | Payable per award schedule, subject to conditions ($)(1) | | Brian T. Moynihan | 50,611,375 | 1,331,682 | 49,279,693 | 49,279,693 | 49,279,693 | | Alastair M. Borthwick | 17,740,990 | 0 | 17,740,990 | 17,740,990 | 12,325,400(3) | | Dean C. Athanasia | 23,533,107 | 0 | 23,533,107 | 23,533,107 | 18,211,487 | | James P. DeMare(4) | 30,367,126 | 0 | 30,367,126 | 30,367,126 | 25,176,424(3) | | Matthew M. Koder | 27,116,328 | 0 | 27,116,328 | 27,116,328 | 21,671,668(3) |
Potential payments from restricted stock units
| (1) The conditions for payment include: (i) compliance with covenants regarding non-solicitation, detrimental conduct, and compliance with anti-hedging/derivative transactions policies; (i) the performance-based cancellation described above; and (iii) compliance with the Qualifying Termination conditions described above (other than in case of Disability), as provided in individual award agreements. Where applicable, the table includes the value of PRSUs granted in 2022 and 2023, assuming the maximum number of units are earned, although actual payout is dependent upon the future achievement of specified performance standards. The value of the portion of the 2021 PRSUs that were earned as of December 31, 2023 is also included, which was 100% of the units granted. |
Potential payments from restricted stock units
| (2) If, within two years following a change in control, the executive’s employment is terminated by our company without “cause” or by the executive for “good reason,” the executive’s PRSU awards will be immediately earned at the 100% standard level and paid per the original schedule. TRSUs will continue to be paid per the original schedule. Payment of the PRSUs is subject to performance-based cancellation. The definition of “cause” is described in more detail under the “Grants of Plan-Based Awards Table.” The definition of “good reason” for this purpose means: (i) a material diminution in the executive’s responsibility, authority, or duty, (ii) a material reduction in the executive’s base salary (with certain exceptions), or (iii) a relocation greater than 50 miles. Certain notice and cure requirements apply in order to claim “good reason.” |
Potential payments from restricted stock units
| (3) Certain awards granted to Messrs. Borthwick, DeMare and Koder provide that these executives’ equity-based awards may continue to vest according to their original schedule if the executive’s employment is terminated due to a workforce reduction or divestiture. In the event of such a termination, the value of the equity-based awards payable to Mr. Borthwick as of December 31, 2023, would have been $15,967,117 for Mr. Borthwick, $25,176,424 for Mr. DeMare, and $27,116,328 for Mr. Koder, subject to conditions for payment including compliance with covenants regarding non-solicitation, detrimental conduct, and compliance with anti-hedging/derivative transaction policies. |
Potential payments from restricted stock units
| (4) Pursuant to a November 2021 letter agreement between Mr. DeMare and the company, Mr. DeMare is entitled to an award of cash-settled TRSUs on the first business day following his termination. These cash-settled TRSUs will replace any restricted stock units that Mr. DeMare previously received but which lack Qualifying Termination provisions and therefore are forfeited upon his termination. The cash-settled TRSUs will vest on the same schedule as the restricted stock units that are forfeited upon Mr. DeMare’s termination, subject to Mr. DeMare’s compliance with certain covenants, including not engaging in detrimental conduct and not working for certain competitive businesses. However, this letter agreement does not provide for continued vesting of the management team stock award granted to Mr. DeMare on February 15, 2023, described in more detail in “Management team stock award” on page 66. |
Other potential payments
Other potential payments Following termination of employment, our named executive officers receive payment of retirement benefits and nonqualified deferred compensation benefits under our various plans in which they participate. The value of those benefits as of December 31, 2023 is set forth in the sections above entitled “Pension benefits table” and “Nonqualified deferred compensation table.” There are no special or enhanced benefits under those plans for our named executive officers, and all of our named executive officers are fully vested in the benefits discussed in those sections. We make tax and financial planning advisory services available to our named executive officers during their employment with us. The standard form of this benefit continues through the end of the year in which the executive ceases employment, including preparation of that year’s tax returns. This benefit may continue for an extended term of up to five years if the executive meets the age and service standard for a Qualifying Termination and does not engage in any full-time employment. The benefit offered during the extended term will end during the calendar year any other full-time employment begins; the benefit, however, will end immediately following termination for cause, or if the executive engages in detrimental conduct or begins employment with a named competitor. Benefits-eligible Bank of America employees who retire with at least 10 years of service and their age plus years of service equal to at least 60 have access to continued coverage under our group health plan program, but the employee generally must pay for the full cost of that coverage on an after-tax basis without any employer subsidy.
Other potential payments
| 84 | BANK OF AMERICA |
Other potential payments
| CEO pay ratio |
Other potential payments
CEO pay ratio Below is: (i) the 2023 annual total compensation of our CEO; (ii) the 2023 annual total compensation of our median employee; (iii) the ratio of the annual total compensation of our CEO to that of our median employee; and (iv) the methodology we used to calculate our CEO pay ratio:
Other potential payments
| CEO pay ratio | | | CEO annual total compensation* | $28,579,834 | | Median employee annual total compensation | $124,221 | | CEO to median employee pay ratio | 230:1 |
Other potential payments
| * This annual total compensation is the “Summary compensation table” amount, plus certain nondiscriminatory benefits (including health insurance). |
Methodology
| • | Calculated CEO pay ratio. We calculated our median employee’s annual total compensation for 2023 according to the SEC’s instructions for preparing the “Summary compensation table,” including employer health insurance contributions and the value of other benefits. We then calculated our CEO’s annual total compensation using the same approach to determine the pay ratio shown above. |
2023 Pay versus performance table
2023 Pay versus performance table
2023 Pay versus performance table
| Year | “Summary compensation table” total for CEO (1) ($) | Compensation actually paid to CEO (2) ($) | Average “Summary compensation table” total for non-CEO NEOs (1) ($) | Average compensation actually paid to non-CEO NEOs (2) ($) | Company TSR (3) ($) | Peer group TSR (3) ($) | Net income ($ in millions) | Revenue ($ in millions) (4) | | 2023 | 28,571,192 | 32,139,080 | 14,135,415 | 15,797,000 | 106 | 97 | 26,515 | 98,581 | | 2022 | 30,177,503 | 11,009,642 | 18,641,262 | 11,731,112 | 101 | 98 | 27,528 | 94,950 | | 2021 | 23,729,169 | 49,888,896 | 16,930,383 | 29,568,322 | 132 | 124 | 31,978 | 89,113 | | 2020 | 25,940,571 | 15,682,323 | 13,670,189 | 10,636,899 | 88 | 90 | 17,894 | 85,528 |
2023 Pay versus performance table
| (1) The CEO for each year reported was Brian T. Moynihan. The other named executive officers, or Non-CEO NEOs, for each year reported are as follows: |
2023 Pay versus performance table
| • | 2023: Alastair M. Borthwick; Dean C. Athanasia; James P. DeMare; and Matthew M. Koder |
2023 Pay versus performance table
| • | 2022: Alastair M. Borthwick; Dean C. Athanasia; Paul M. Donofrio; and Geoffrey S. Greener |
2023 Pay versus performance table
| • | 2021: Alastair M. Borthwick; Paul M. Donofrio; James P. DeMare; Matthew M. Koder; and Thomas K. Montag |
2023 Pay versus performance table
| • | 2020: Paul M. Donofrio; Dean C. Athanasia; Geoffrey S. Greener; and Thomas K. Montag |
2023 Pay versus performance table
| (2) SEC rules require certain adjustments be made to the “Summary compensation table” totals to determine “compensation actually paid” as reported in the “Pay versus performance table” above. For purposes of the pension valuation adjustments shown below, there was no pension service or prior service cost. In addition, for purposes of the equity award adjustments shown below, no equity awards were canceled due to a failure to meet vesting conditions. The following table details the applicable adjustments that were made to determine “compensation actually paid” (all amounts are averages for the named executive officers other than the CEO) for 2023. See the “Pay versus performance table” on page 80 in the 2023 proxy statement for the adjustments made to determine “compensation actually paid” for prior years: |
2023 Pay versus performance table
| Year | Executive(s) | “Summary compensation table” total ($) | Pension valuation adjustments | Equity award adjustments | | | | | | | | | | Deduct change in pension value ($) | Deduct grant date value of stock awards granted in the year ($) | Add year-end value of unvested equity awards granted in year ($) | Change in value of unvested equity awards granted in prior years ($) | Change in value of equity awards granted in prior years which vested in year ($) | Change in value of equity awards granted and vested in year ($) | Add dividends & interest accrued ($) | | 2023 | CEO | 28,571,192 | (955,726) | (25,728,076) | 17,961,221 | 2,578,294 | 2,485,188 | 5,792,154 | 1,434,833 | | | Non-CEO NEOs | 14,135,415 | (23,101) | (8,493,358) | 8,206,404 | 903,469 | 372,788 | 0 | 695,384 |
2023 Pay versus performance table
| (3) TSR is determined based on the value of an initial fixed investment of $100 on December 31, 2019. The peer group TSR represents TSR of the KBW Bank Index. |
2023 Pay versus performance table
| (4) Represents total revenue, net of interest expense. |
Relationship between “compensation actually paid” and performance measures
Relationship between “compensation actually paid” and performance measures Consistent with Responsible Growth and as described in our “Compensation discussion and analysis” on page 53, our Compensation and Human Capital Committee determines NEO compensation based on a review of company and line of business performance as well as each NEO’s individual performance. In addition, our Board’s independent directors collectively approve our CEO’s compensation. Bank of America’s performance framework and pay for NEOs are aligned to the four tenets of Responsible Growth and reward our executives commensurate with our performance.
Relationship between “compensation actually paid” and performance measures
| 86 | BANK OF AMERICA |
Relationship between “compensation actually paid” and performance measures
Specifically, the “Pay versus performance table” above and chart below illustrate the following:
Relationship between “compensation actually paid” and performance measures
| • | A majority of our executives’ variable pay is delivered as deferred equity-based awards. As a result, CEO and average Non-CEO NEO “compensation actually paid” each year increased when our TSR increased and correlates with our TSR performance and shareholder value creation over the applicable measurement periods. |
Relationship between “compensation actually paid” and performance measures
| • | Bank of America’s cumulative TSR exceeded the TSR of the KBW Bank Index for the four-year measurement period, which reflects our executives’ successful execution of Responsible Growth. |
Relationship between “compensation actually paid” and performance measures
| • | As discussed in the “Compensation discussion and analysis”, the Compensation and Human Capital Committee and Board consider a range of measures, including net income and revenue, in making annual awards. Accordingly, increases in net income and revenue generally have a positive impact on CEO and average Non-CEO NEO “compensation actually paid,” although the effect may be delayed due to the timing disconnect between performance year decisions and inclusion in “compensation actually paid.” Because the Committee and Board made the majority of such awards as deferred equity-based awards, changes in our TSR also impacted “compensation actually paid.” |
Relationship between “compensation actually paid” and performance measures
The chart below highlights the alignment between “compensation actually paid” to our named executive officers and our TSR performance and net income for the past four fiscal years.
Relationship between “compensation actually paid” and performance measures
| Performance Measures | Other Considerations | | Net Income Revenue Total Shareholder Return Return on Assets Tangible Book Value* | In addition to the performance measures listed here, the Committee considers a range of factors in determining compensation aligned with the tenets of Responsible Growth based on (i) growing and winning in the market; (ii) growing with our customer-focused strategy; (iii) growing within our Risk Framework; and (iv) growing in a sustainable manner. For additional information regarding our NEOs’ 2023 performance and the role the performance measures play in our compensation program, see “Individual performance and pay rationale highlights” beginning on page 62 and “Performance evaluation and pay decision process” on page 58. |
Relationship between “compensation actually paid” and performance measures
| * Tangible book value per common share represents ending tangible common shareholders’ equity divided by ending common shares outstanding. |
Relationship between “compensation actually paid” and performance measures
| 2024 PROXY STATEMENT | 87 |
Relationship between “compensation actually paid” and performance measures
| Proposal 3: Ratifying the appointment of our independent registered public accounting firm for 2024 |
Relationship between “compensation actually paid” and performance measures
Proposal 3: Ratifying the appointment of our independent registered public accounting firm for 2024
Relationship between “compensation actually paid” and performance measures
| | Our Board recommends a vote “FOR” ratifying the appointment of our independent registered public accounting firm for 2024 (Proposal 3). |
Relationship between “compensation actually paid” and performance measures
Our Audit Committee is directly responsible for the appointment, compensation, retention, and oversight of our independent registered public accounting firm, and is involved in the selection of the firm’s lead engagement partner who is subject to a mandatory, regular rotation and who may provide services to our company for a maximum of five consecutive years. In selecting and approving a lead engagement partner, the Committee relies on relevant succession criteria established by management and the Committee, interactions with prospective candidates, assessments of their professional experience, and input from our company’s independent registered public accounting firm. The Committee also engages in an annual evaluation of the independent registered public accounting firm. It considers, in particular, whether the retention of the firm is in the best interests of our company and its shareholders, taking into account the firm’s quality of service, the firm’s institutional knowledge and experience, the firm’s international capabilities, the firm’s sufficiency of resources, the quality of the communication and interaction with the firm, and the firm’s independence, objectivity, and professional skepticism. The Committee also considers the advisability and potential impact of selecting a different independent registered public accounting firm. After assessing the qualifications, performance, and independence of PricewaterhouseCoopers LLP (PwC), which has served as our company’s independent registered public accounting firm since 1958, the Committee believes that retaining PwC is in the best interests of our company. The Committee has appointed PwC as our independent registered public accounting firm to audit the 2024 consolidated financial statements of Bank of America Corporation and its subsidiaries. Although it is not required to do so, our Board is asking shareholders to ratify PwC’s appointment. If our shareholders do not ratify PwC’s appointment, the Committee will consider changing our independent registered public accounting firm for 2024. Whether or not shareholders ratify PwC’s appointment, the Committee may appoint a different independent registered public accounting firm at any time if it determines that such a change is appropriate. PwC has advised the Committee that it is an independent accounting firm with respect to our company and its affiliates in accordance with the requirements of the SEC and the Public Company Accounting Oversight Board. Representatives of PwC are expected to be present at our annual meeting, will have an opportunity to make a statement if they choose, and are expected to be available to respond to appropriate shareholder questions. PwC’s 2023 and 2022 fees. PwC’s aggregate fees for professional services rendered in or provided for 2023 and 2022, as applicable, were:
Relationship between “compensation actually paid” and performance measures
| | 2023 | 2022 | | | ($ in millions) | | | Audit fees | 56.7 | 55.5 | | Audit-Related fees | 6.4 | 7.0 | | Tax fees | 5.5 | 5.9 | | All other fees | 0.0 | 0.0 | | Total fees | 68.6 | 68.4 |
Relationship between “compensation actually paid” and performance measures
Audit fees. Audit fees relate to the integrated audit of our consolidated financial statements, and internal control over financial reporting, including disclosures presented in the footnotes to our company’s financial statements (for example, regulatory capital, among other disclosures). Audit fees also relate to the audit of domestic and international statutory and subsidiary financial statements, the review of our interim consolidated financial statements, the issuance of comfort letters and SEC consents, and services provided in connection with certain agreed-upon procedures and other attestation reports. Audit fees are those billed or expected to be billed for audit services related to each fiscal year. Audit-related fees. Audit-related fees cover other audit and attest services, services provided in connection with certain agreed-upon procedures and other attestation reports, financial accounting, reporting and compliance matters, benefit plan audits, and risk and control reviews. Fees for audit-related services are those billed or expected to be billed for services rendered during each fiscal year. Tax fees. Tax fees cover tax compliance, advisory, and planning services and are those billed or expected to be billed for services rendered during each fiscal year. All other fees. During 2023 and 2022, all other fees consisted primarily of amounts billed or expected to be billed for the company’s engagement of PwC to provide technical subscription services rendered during each fiscal year.
Relationship between “compensation actually paid” and performance measures
| 88 | BANK OF AMERICA |
Relationship between “compensation actually paid” and performance measures
| Audit Committee Report |
What are the votes required to elect each director nominee and approve the other proposals?
What are the votes required to elect each director nominee and approve the other proposals?
What are the votes required to elect each director nominee and approve the other proposals?
| Proposals for your vote | Votes required | Effect of abstentions | Effect of broker non-votes | | Proposal 1: Electing directors | Majority of votes cast | No effect | No effect | | Proposal 2: Approving our executive compensation (an advisory, non-binding “Say on Pay” resolution) | Majority of votes cast | No effect | No effect | | Proposal 3: A proposal ratifying the appointment of our independent registered public accounting firm for 2024 | Majority of votes cast | No effect | No effect | | Proposal 4: A proposal to amend and restate the Bank of America Corporation Equity Plan | Majority of votes cast | No effect | No effect | | Proposals 5–10: Shareholder proposals | Majority of votes cast | No effect | No effect |
What are the votes required to elect each director nominee and approve the other proposals?
| • | Proposal 1: Electing directors. Our Bylaws provide that a nominee for director in an uncontested election will be elected to our Board if the votes cast for the nominee’s election exceed the votes cast against his or her election. Abstentions from voting and broker non-votes are not treated as votes cast and are not counted for purposes of determining the election of directors. If a nominee does not receive the required votes for election at our annual meeting, our Board, with the assistance of our Corporate Governance, ESG, and Sustainability Committee, will consider whether to accept the director’s offer of resignation, which is required to be tendered under our Corporate Governance Guidelines. Our Board will publicly disclose its decision regarding the resignation and the basis for its decision within 90 days after election results are certified. |
What are the votes required to elect each director nominee and approve the other proposals?
| • | Other proposals. Approval of Proposals 2 through 10 requires the votes cast in favor of each such proposal to exceed the votes cast against the proposal. Abstentions from voting and broker non-votes are not treated as votes cast and are not counted in determining the outcome of any of these proposals. |
What are the votes required to elect each director nominee and approve the other proposals?
| 2024 PROXY STATEMENT | 111 |

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