Business Context and Reporting Period
This Form 8-K, filed on February 13, 2026, by Bank of America Corporation (BAC), reports the Board of Directors' approval of 2025 total compensation for Chair and CEO Brian T. Moynihan. The filing summarizes the Company's full-year 2025 financial performance and operational highlights.
Key Financial Metrics
- Revenue: $113.1 billion (up 7% year-over-year).
- Net Income: $30.5 billion (up 13% year-over-year).
- Diluted Earnings Per Share (EPS): $3.81 (up 19% year-over-year).
- Net Interest Income: Record levels, up 7%.
- Total Assets: $3.4 trillion.
- Capital and Liquidity: $201 billion in CET1 capital; $975 billion in average global liquidity sources.
- Efficiency Ratio: 62% (improved by 147 basis points).
- Return on Assets (ROA): 0.89% (improved by 7 basis points).
- Return on Average Common Equity (ROACE): 10.6% (improved by 106 basis points).
- Loans and Deposits: Ending loans up 8%; ending deposits up 3%.
Material Changes Versus Prior Period
Compared to 2024, the Company achieved significant growth across key metrics. Revenue increased 7% to $113.1 billion, driven by record net interest income and growth in investment banking fees (7%) and asset management fees (12%). Net income rose 13% to $30.5 billion. The efficiency ratio improved by 147 basis points to 62%, reflecting disciplined expense management despite increased investments in technology and personnel. The stock price increased 25% in 2025, following a 31% gain in 2024, reaching an all-time high.
Management Commentary, Risks, and Unusual Items
CEO Compensation: Total compensation for 2025 was set at $41.0 million, an increase from $35.0 million in 2024. This consists of a $1.5 million base salary and a $39.5 million equity incentive package. There is no cash bonus. The equity package includes time-based RSUs and performance RSUs tied to 2026-2028 financial performance.
Performance Standards: To achieve a 100% target payout on performance RSUs, the Company must achieve a 3-year average ROA of 90bps (requiring ~$31 billion annualized net income). A 150% maximum payout requires a 3-year average ROA of 110bps (requiring ~$37 billion annualized net income), a level higher than any historical net income reported by the Company.
Operational Highlights: The Company raised the minimum hourly wage for U.S. employees to $25/hour. The Employee Engagement Index remained stable at 86%, with employee turnover at 8%. Philanthropic investments totaled over $289 million.
Risks and Contingencies: The filing does not explicitly detail new material risks or contingencies beyond the standard performance hurdles for executive compensation.
Investor Verification Checklist
- Verify the 2025 full-year financial statements to confirm the reported $30.5 billion net income and $113.1 billion revenue.
- Review the specific vesting schedules and performance metrics for the $39.5 million CEO equity award, particularly the 2026-2028 ROA targets.
- Confirm the composition of the $3.4 trillion total assets and the $201 billion CET1 capital figure in the latest regulatory filings.
- Assess the sustainability of the 62% efficiency ratio given the noted investments in technology and delivery networks.
- Monitor the stock price trajectory to validate the reported 25% increase in 2025 and the all-time high claim.