Bank Of America CEO Pay Rises As Valuation Signals Undervalued Shares

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• Bank of America’s board approved a 17% increase in CEO Brian Moynihan’s 2025 compensation.

• The decision follows what the board described as strong 2025 performance for NYSE:BAC.

• Future payouts are tied to higher performance targets, reflecting both recent results and upcoming challenges.

For you as an investor looking at NYSE:BAC, this pay decision highlights how one of the largest US banks connects executive rewards to business results. Bank of America operates across consumer banking, wealth management, corporate lending, and markets activities, so board judgments on performance affect many parts of the business. The focus on net income, revenue, and market performance indicates which metrics directors considered most important.

The board’s move is also part of a broader conversation on executive pay levels at large US banks and how those compare with outcomes for shareholders, employees, and customers. With higher performance targets linked to future compensation, investors can follow how closely realized pay aligns with those objectives over time and how that compares with their own expectations for risk, returns, and governance at NYSE:BAC.

Stay updated on the most important news stories for Bank of America by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Bank of America.

Does the team leading Bank of America have what it takes? See our full breakdown of the management team’s track record and compensation.

• ✅ Price vs Analyst Target: At US$52.55 versus a consensus target of US$62.23, the current price sits about 18% below where analysts expect Bank of America to trade.

• ✅ Simply Wall St Valuation: Shares are flagged as undervalued, trading about 19% below the Simply Wall St estimate of fair value.

• ❌ Recent Momentum: The 30 day return of roughly 0.8% decline shows short term weakness despite the positive valuation signals.

There is only one way to know the right time to buy, sell or hold Bank of America. Head to the Simply Wall St’s company report for the latest analysis of Bank of America’s Fair Value.

• 📊 A 17% CEO pay increase tied to what the board calls strong 2025 performance suggests directors see recent financial and share price outcomes as aligned with their expectations.

• 📊 Given the discount to both analyst target and estimated fair value, you might want to watch how future profitability, capital returns and executive scorecards line up with these pay decisions.

• ⚠️ The main risk signal here is governance related. If future results do not match the higher compensation, some investors may question alignment between management rewards and shareholder outcomes.

For the full picture including more risks and rewards, check out the complete Bank of America analysis. Alternatively, you can check out the community page for Bank of America to see how other investors believe this latest news will impact the company’s narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BAC.

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