In first year on the job as CEO of troubled Bank of America, Brian Moynihan was paid handsomely. His base salary was $950,000 and will remain the same. But he got a restricted stock grant worth a whopping $9.05 million. So for the year, he made $10 million.

But the real story is the attempt by the board to structure the compensation package in a shareholder-friendly way that strikes the right balance between risk and rewards. Moynihan was not granted a cash bonus, and none of the restricted shares vest immediately but rather over five years.

Moreover, to take full ownership of the restricted shares at the staggered vest dates, various performance goals will have to be met. The earliest any shares can vest is 2012.

His salary structure at first glance might seem to be out of step with what's going on with other pay packages at the bank, many of which saw the cash components rise. Some may also question the sheer size of the grant following a year in which the stock price fell. But the package appears to reflect the fact that 2011 looms as a critical year for Bank of America.

The board wants Moynihan well incented. Most acknowledge that he stepped into a nearly impossible set of circumstances, a very small window for immediate success. His job will only get harder. If the restricted stock pays off for him, he will have earned it.

For more:
- here's the article from the Boston Globe

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