Wednesday, January 28, 2015

Moynihan tops among CEOs for corporate jet costs, report says

Bank of America CEO Brian Moynihan is No. 1 in a ranking of U.S. chief executives whose use of corporate jets costs their companies the most.

Fortune magazine, citing data from research firm Equilar, reported the finding this week. Moynihan's corporate jet use was valued at $448,251 in fiscal 2013, which puts him among the five "most expensive CEOs to fly around," the magazine said.

Moynihan
The figure does not include the value of Moynihan's corporate jet use for personal reasons, an amount the Charlotte-based bank does not disclose.

Under an agreement with Bank of America, Moynihan reimburses the bank for non-business flights on the lender's corporate aircraft, the bank said in its 2014 proxy statement.

Bank of America spokesman Lawrence Grayson declined to comment on Equilar's ranking when I contacted him Wednesday.

For comparison's sake, Moynihan's corporate jet use was valued at $477,060 in fiscal 2012, according to a proxy statement.

14 comments:

Tvan said...

What's the point of this note? I don't mean to come across as a "Negative Nancy," but the note is lacking substance. In other words, why is BOA flying Moynihan around so much? If the reason is because his presence is required at events "X, Y, Z" and he's traveling with a team of people, then please let us know. I doubt he's traveling all over the place by himself. Also, is he attending multiple meetings in one day or going to places where corporate travel is prohibitive?

I realize that you may not have all of this right now, but please Deon, add some weight to this article of yours. Saying he's one of the most expensive executives to transport is one thing. Giving us the reasons behind the cost is another.

Deon Roberts said...

Hi, Tvan.

Thanks for your very good question. As you can see, the bank declined to comment. So, we only speculate as to where he traveled, and why, in fiscal 2013.

Anonymous said...

Making this article rather boring and pointless!!!

Deon Roberts said...

I would imagine, and this is only speculation, that some of his travel might have had to do with the $16.65 billion settlement the bank reached in August with the U.S. and various state governments. Perhaps he met with regulators and lawyers a good bit last year as the bank tried to finalize that deal. That's just speculation.

Tvan said...

I understand Deon, but was no one at BOA available to discuss this? I know someone at BOA that's on his intelligence team. They prepare the various documents and booklets for all of the meetings he's involved in. You know, "book reports" for meetings with the Feds, other banks, corporate and world leaders, etc... When required, this team actually travels with him on the jet and they were all over the place last year.

As a journalism major and PR professional, I really do appreciate the fact that you did not insert speculation into the story. I say this because an old mentor drilled into my brain "Only write the facts and what's known." However, in this particular case, I think you could have inserted the speculation you provided at 3:13pm. That's a pretty good guess and probably not too far off the mark. And with him living in the Boston area, I believe he flies on the jet between here and there when required. But my understanding of that travel is that he reimburses the bank.

George Cox said...

That's really not that much considering how much a nice
corporate jet such as a Gulfstream
cost to operate per hour.

Anonymous said...

the observer's modus operandi is pretty clear...try to bash corporate america/capitalism, promote the gay thing and stories that play the victim card and always make anything related to christianity look bad. what a paper. I'm sure they're just following the the desires of their masters.

Why don't you investigate how much travel time to vacations obama spends on air force 1??

Larry said...

Anyone catch the story of the two new Air Force One's

It seems that two of them will cost 1.5 Billion

Yes Billion.

Maybe the President needs to travel with the common folks and we could let him or her know what is really important in this country.

Tvan said...

Actually Larry, USAF has been contemplating replacement planes for the current VC-25s for about a decade now. The reason for choosing early is that the planes need certain "modifications" done. And as you know, these are not just basic adjustments. Seeing that USAF just upgraded the current planes and the fact that Boeing knows how to modify the 747, it makes sense to do it now. Finally, seeing that Boeing is probably going to close the 747 production line in a few years, they will probably make these the very last 747s produced..

Deon Roberts said...

Hi, Tvan. No, the bank did not want to discuss Moynihan's travel with us. We did ask.

Anonymous said...

Good point 6:05. How much time Mr. Moynihan spends on a plane is really only up to BofA shareholders. How much taxpayer money has O spent jetting off to Hawaii during his time in office? You'd think the CO would have enough time in six years to write a blog post on that.

James Edgar said...

I hope this will not come off as an angry rant, because it's not meant to be...

One of the biggest weapons people of the very liberal political view use in their stance on what is wrong with our ecomomic system is the private jets of big corporations - that it is a sign that all the execs of these companies only get out of bed in the morning to steal money from common folk for themselves. I hope that was not the intent of this post, although I can see how it would be.

Personally, I have no problem with big companies using private jets to get their execs from one place to another. I think the business they have to attend to is important enough for them to not have to wait 3 hours in the TSA line and deal with those moron TSA agents.

Now when the execs establish policies that tell the rank & file, "great job, you got the highest possible score on your performance review, here's your 3% raise" while voting double-digit pay increases for themselves, THAT I have a big problem with. But the use of corporate jets? Not a big deal to me.

Tevye said...

As the Good Book says, "When a poor man eats a chicken, one of them is sick."

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