Bloomberg News reports that while the Securities and Exchange Commission broadly chided the bank earlier this year for not describing what drove compensation decisions, it took particular interest in the $15.5m paid to Montag, according to correspondence between the agency and Bank of America released Wednesday.
Montag was paid significantly more than other top managers, excluding CEO Brian Moynihan.
Wall Street pay has been a flashpoint for U.S. lawmakers, but it’s less common for the SEC to press a bank to disclose more to investors about what factors led to compensation decisions. Public companies are required to reveal information about the compensation of their CEO, chief financial officer and three other highest paid executives in annual proxy statements. Companies also must publish the criteria used in making those decisions, according to the SEC.
“Disclosure lacking analysis of the specific factors in evaluating a named executive officer’s performance and how that evaluation translated into a compensation determination is tantamount to a discretionary decision-making process,” the SEC said in a June 22 letter to Bank of America that was published on the regulator’s website.
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