Bank of America shareholders have voted in favor of the bank’s executive compensation plans, including a $35 million package for CEO Brian Moynihan. The approval, which came despite opposition from proxy advisory firm Institutional Shareholder Services, reflects shareholder confidence in the bank’s recent performance. Moynihan’s pay marks a 21% increase from the previous year, underpinned by a 2.3% rise in net income and a 3.4% increase in revenue.
In addition to the compensation vote, all 14 board directors were re-elected at the bank’s annual shareholder meeting. However, proposals related to climate transparency and lobbying disclosures failed to gain traction. One such proposal called for more detailed reporting on how the bank’s political contributions align with its climate commitments. This follows Bank of America’s recent decision to exit the Net-Zero Banking Alliance, a move that drew criticism from environmental advocates concerned about backsliding on emissions goals.
Despite the sustainability-related pressure, the bank’s leadership appeared to maintain broad shareholder support. The votes come at a time when large financial institutions face increasing scrutiny over climate policy commitments and executive pay amid ongoing regulatory and political shifts.
On the macroeconomic front, CEO Moynihan addressed concerns over the ripple effects of U.S. trade tariffs. While he noted that the bank does not expect a direct impact, he acknowledged that broader economic consequences could affect clients and markets. He also underscored the importance of central bank independence, a subtle response to President Donald Trump’s recent public criticism of Federal Reserve Chair Jerome Powell.
Bank of America’s financial performance has remained strong. In its most recent quarterly results, the bank beat earnings expectations, driven by higher interest income and record stock trading revenues. The shareholder approvals suggest continued investor confidence in the bank’s strategic direction, even as it navigates complex terrain involving climate policies, executive compensation, and economic uncertainty.
Looking ahead, the outcome of the shareholder meeting reinforces the need for major financial institutions to balance profitability with growing expectations around environmental and governance practices. For Bank of America, maintaining that equilibrium will be crucial as stakeholder demands continue to evolve.
