Bank of America CEO Brian Moynihan got a 23% raise. Bank of America's share price dropped nearly 6% over the course of 2015. The S&P 500, by comparison, dropped 3.5%. The lower the stock goes, the higher his compensation raise.
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https://finance.yahoo.com/news/warren-buffett-shines-a-spotlight-on-the--most-egregious--example-of-financial-deception-121857624.html#
“Stock-based compensation is the most egregious example,” Buffett said. “The very name says it all: ‘compensation.’ If compensation isn’t an expense, what is it? And, if real and recurring expenses don’t belong in the calculation of earnings, where in the world do they belong?”
Buffett has been arguing this point for as long as companies have been excluding this expense from their income statements.
“This Alice-in-Wonderland outcome occurs because existing accounting principles ignore the cost of stock options when earnings are being calculated, even though options are a huge and increasing expense at a great many corporations,” Buffett said in his 1998 letter to Berkshire Hathaway shareholders. “In effect, accounting principles offer management a choice: Pay employees in one form and count the cost, or pay them in another form and ignore the cost.”
One has to wonder about the morality of numerous Banks and business leaders, especially the ones who routinely put their own limitless self-gain above the needs of others. What sorts of people are these? Just how did their families and society in general fail them in matters of conscience?
In considering the answers, one often winds up incredulous and outraged by their actions. After all, what kinds of individuals lie about their underlying motives while they systematically destroy the people, the culture and the country. People should question about the morality of people who keep supporting big business practices and amassing wealth for themselves while an increasing number of their fellow Americans wind up jobless and homeless. Accordingly, U.S. employment positions continue to transfer to offshore sites to bolster a plan for maximum profits for the already grossly enriched at the expense of the populace at large. Analogously for companies on U.S. soil, cutbacks and closures have a similarly deleterious effect in terms of under and unemployment.
In relation, the public, obviously, cannot make lots of purchases while an inadequate supply of money is coming into households during which time store shelves are overstocked due to past practices wherein the market became saturated with far too many items for a wide variety of products. Consequently, the manufacture of goods grinds to an almost complete halt and the economy continues to tumble.
How has David Reilly, CTO of Bank of America, been performing?