Volume Buzz: Bank of America Corp (NYSE:BAC), Ford Motor Company (NYSE:F)
Bank of America Corp(NYSE:BAC) has been got the approval from the Federal Reserve to buy back stock worth $5 billion as well as redeem preferred shares to the tune of $5.5 billion.
This is the firm’s first repurchase of shares since the financial crisis.
On Thursday, the Fed had given its approval to the capital plans of 14 banks. This will allow them to return their profits to shareholders either in the form of dividends or share buybacks.
These share buybacks will help in bolstering the credibility of chief executive of Brian T. Moynihan.
He had come under fire for raising expectations of investors for a “modest” dividend increase, only to have the Fed reject his request, and he didn’t ask the central bank for anything last year.
“Buying back common shares is the best way to continue to drive value for our shareholders,” Moynihan, 53, said in the statement. “We have more than adequate capital to support our strategic plans.”
Shares of BAC soared 3.72% to $12.56 and made a new 52-week high of $12.61.
The Chief Executive of Ford Motor Company(NYSE:F), Alan Mullaly will be paid $20.95 million in 2012, 29 percent lesser than what he was paid in the previous year.
Mulally earned $2 million in salary, the same as he earned in 2011. But his bonus fell 27 percent to $1.3 million and his stock awards dropped by half to $6.8 million, the company said in a regulatory filing.
He received $7.5 million in stock options, the same as in 2011. His bonus under Ford’s incentive bonus plan for executives fell 28 percent to $2.6 million.
Mulally also received $680,809 in other compensation, including the use of a private airplane, housing expenses and security. That was up slightly from 2011.