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Leaders of six major US banks collectively earned more than $ 152 million in 2018, more than the $ 141 million paid by their leaders in 2008.
Photograph of George Marks / Getty Images
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The information provided by the major US banks on executive compensation tells an important story: the collective memory of the market is about 10 years.
Wells Fargo
(symbol: WFC), the last of six major US banks to have published salary figures, said in a proxy statement earlier this week that CEO Tim Sloan had obtained an increase. He earned $ 18.4 million in 2018, about $ 900,000 more than his total compensation in 2017, but far less than the $ 31 million raised by James Dimon, CEO of
JPMorgan Chase
(JPM).
Overall, the CEOs of the six banks earned more than $ 152 million in 2018. This exceeds the $ 141 million paid by the same banks in 2008 – the year before that of the bankers after the financial crisis.
Last year,
Goldman Sachs
S
New Chief (GS) David Solomon earned $ 23 million. Goldman's rival
Morgan Stanley
(MS) paid James Gorman $ 29 million. AT
Bank of America
Brian Moynihan earned $ 26.5 million, while
Citigroup
(C) The CEO, Michael Corbat, earned $ 24,183,714 last year, according to the proxy company's ranking.
From the end of November 2007 (beginning of the recession from 2007-2009 in December 2009) to today, the average total annual return for the shareholders of these six banks is about 0.8% negative. The average annual performance of the holding of the
S & P Bank ETF
(KBE) over the same period is negative by 0.1%.
JPMorgan shares have grown at an average annual rate of 9.6% since the end of November 2007, while
Wells Fargo
shares returned 6.1% and Goldman shares 0.8%. Shares of Morgan Stanley and Bank of American posted negative returns of 2.2% and 3.0%, respectively.
Citigroup is a special case. It received a lot of government assistance during the crisis and outstanding shares rose sharply after the United States converted its preferred shares into common stock in 2009. This diluted investor holdings; Citigroup shares have lost 16% of investors on average per year since the end of November 2007.
the
Dow Jones Industrial Average
reported 9.6% per year on average over the same period.
Of course, all general managers have changed since the crisis, with the exception of Dimon.
The next step for the CEO's compensation is $ 212 million. That's what the directors of the six banks won in 2007.
Write to Al Root at [email protected]
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