Board Election and Pay Packages Approved Despite Criticism
Bank of America shareholders have voted in favor of the compensation packages for top executives, including CEO Brian Moynihan, and have re-elected all 14 board members. The decision comes amid scrutiny from shareholder advisory groups, some of which advised a vote against the pay approvals.
Moynihan’s compensation for the previous year rose to $35 million, reflecting a 21% increase. The board attributed the raise to performance metrics, including a 2.3% increase in net income and a 3.4% rise in total revenue. Despite the strong financials, Institutional Shareholder Services (ISS) criticized the methods used to determine executive compensation, raising concerns over transparency and alignment with long-term value.
All shareholder-submitted proposals, which included calls for greater transparency in lobbying practices and climate goals alignment, were rejected. The vote underscores the continued support from institutional investors, even in the face of growing activism and environmental accountability campaigns.
Cautious Outlook Amid Trade and Economic Uncertainty
In addressing potential headwinds, Moynihan commented on recent geopolitical developments, particularly the Trump administration’s approach to global trade. While new tariff measures have been announced and paused, the CEO stated that any direct effect on Bank of America would likely come from broader economic shifts rather than from the trade policies themselves.
“If consumption decreases due to rising trade tensions, we might see job losses and a rise in unemployment,” Moynihan warned, highlighting the indirect exposure of the banking sector to macroeconomic disruptions.
Despite market uncertainties, Bank of America’s economic research division does not forecast a recession in the near term. However, executives believe the Federal Reserve will maintain current interest rates, citing persistent inflation pressures as a key factor.
Support for Central Bank Independence Amid Political Pressures
Shareholders raised concerns about President Trump’s escalating attacks on Federal Reserve Chair Jerome Powell, especially following social media posts criticizing Powell for resisting interest rate cuts. Moynihan reaffirmed the bank’s belief in maintaining the Fed’s independence, calling it a “pillar of U.S. financial consistency.”
This sentiment reflects broader anxiety within financial institutions about political interference in central banking policy. As the election cycle intensifies, statements from high-ranking officials are increasingly influencing investor sentiment.
Environmental Proposal Rejected Amid Climate Alliance Exit
A notable shareholder proposal called for annual reporting on the alignment of Bank of America’s lobbying and policy activities with its long-term climate goals, including the 2030 sectoral emissions reduction and 2050 net-zero targets. The proposal failed to gain approval, highlighting the disconnect between shareholder environmental activism and boardroom priorities.
The rejection also follows Bank of America’s recent withdrawal from the Net-Zero Banking Alliance, a coalition of financial institutions committed to climate-conscious lending and investment strategies. This move has sparked criticism from environmental groups and some institutional investors advocating for climate transparency.
Solid First-Quarter Earnings Fuel Positive Outlook
Despite the controversy surrounding executive pay and policy, Bank of America reported a strong first quarter, surpassing profit expectations. Higher interest income and robust performance from stock trading operations contributed to the solid financial results. The bank’s traders reportedly achieved record revenues, reflecting volatility in the markets and effective risk strategies.
With shareholder confidence largely intact and operational performance on solid footing, Bank of America appears positioned for stability—though it continues to face challenges related to economic policy, governance scrutiny, and environmental responsibility.