Bank of America Corporation, a prominent player in the banking industry with a market capitalization of nearly $300 billion, announced that at its Annual Meeting held on Tuesday, shareholders approved the amendment and restatement of the Bank of America Corporation Equity Plan. According to InvestingPro data, the bank has maintained its position as one of the most stable dividend payers, having raised its dividend for 11 consecutive years. The approved changes include an increase in the number of shares available for grant by 100 million, a cap on the value of shares granted to non-employee directors, and an extension of the Plan’s expiration date from April 24, 2033, to April 21, 2035.
The amendments to the Plan also set a $1 million annual limit on the total value of shares and cash fees that can be awarded to a non-employee director, with certain exceptions for donations and special services. This decision follows the guidelines detailed in the company’s proxy statement filed on March 10, 2025. Trading at a P/E ratio of 11.67, the bank’s stock has seen a year-to-date decline of 11.28%, potentially presenting an opportunity for value investors.
In addition to the Equity Plan amendments, shareholders at the meeting voted on several other key items. All nominated directors were elected to the board, and the advisory vote on executive compensation, commonly referred to as “Say on Pay,” was approved. PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for the company for the year 2025.
However, several shareholder proposals did not receive approval, including a proposal for the nomination of more director candidates than board seats, a request for a report on board oversight of risks related to animal welfare, a request for a report on lobbying alignment with the company’s climate goals, and a request for disclosure of the energy financing ratio.
The results of the votes indicate a continued trust in the current board’s direction and governance of the company, while also reflecting the shareholders’ perspectives on executive compensation and broader governance issues.
The information provided in this article is based on a press release statement from Bank of America Corporation as filed with the Securities and Exchange Commission on April 24, 2025. For deeper insights into BAC’s valuation and comprehensive analysis, including exclusive ProTips and detailed financial metrics, check out the full research report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.
In other recent news, Bank of America reported a 2.3% increase in net income and a 3.4% rise in revenue last year, which contributed to CEO Brian Moynihan receiving a $35 million pay package, approved by shareholders. Phillip Securities upgraded the bank’s stock rating from Accumulate to Buy, citing strong investment and brokerage segments, and a positive outlook on net interest income and wealth management fees. RBC Capital Markets maintained an Outperform rating for Bank of America, highlighting its robust fundamentals and diversified business model, although it lowered the price target to $45 due to economic uncertainties. Truist Securities also reduced its price target to $47 but retained a Buy rating, adjusting earnings projections and noting increased share buybacks as a positive factor. These analyst actions reflect varied perspectives on Bank of America’s future performance amid changing market conditions.
