Bank of America (NYSE:BAC) rewarded Brian Moynihan with a very large piece of sugar claiming that it was well deserved after all the hard turn around work. What the board is really saying is that they did a lot of good work by picking and backing this guy. At this stage to come out and not publicly reward him big time would have signalled board dissatisfaction.
Given the story arc of Bank of America’s revival the board has no option but to signal satisfaction. Two marque members in particular would find it difficult to advocate their financial leadership is questionable.
Susan Bies 65 was a Governor of the Federal Reserve and is also a member of the SEC advisory committee improving financial reporting.
Donald Powell 71 was the former head of the FDIC.
Five independent directors are less than twelve months on the board and were not parties to previous decisions. The new guys usually go with the flow until they find their own footing.
David Yost 65, Sharon Allen 60, Arnold Donald 58, Lionell Newell 58 and Linda Hudson 62 probably all nodded and said well done.
So the newbies and gotta be are half the board so you know which way this is going to roll.