logo
  Join        Login             Stock Quote

Big Bank Ceos Walk Away With Big Bucks In 2011

 January 01, 2012 04:46 PM
 


Banks may have been the hardest hit this year in the stock market, but the CEOs who run them are doing just fine.

According to data from Rochdale Securities analyst Dick Bove, the heads of major banking groups including JPMorgan Chase (JPM" title="JPM : Stock Quote, News and Research" class="showrtquote">JPM), Goldman Sachs (GS) and Bank of America (BAC" title="BAC : Stock Quote, News and Research" class="showrtquote">BAC) are out-earning their employees and shareholders even as shares of bank stocks as a group lost about 26% this year.

[Related -How bank reserves make the gap between deposits and loans disappear]

Bove found that while the 23 financial institutions he follows saw their stock prices and market cap drop by more than 30% and 11%, respectively, bank CEO compensation averaged $7.74 million. That means the banking heads brought in 50 to 100 times the average worker.

Take BofA's CEO Brian Moynihan who will earn $2.26 million this year while his bank's market value dropped 60% – the worst in Rochdale's study.

Chase CEO Jamie Dimon will earn $41.9 this year — the most among the bank CEOs in Bove's coverage list — for a bank that saw its stock lose roughly 23% this year.

[Related -Bank Stocks: The Misbegottenness of the Volcker Rule Truly Knows No Bounds]

There's also Goldman's Lloyd Blankfein whose compensation was nearly $22 million, while  the investment bank he runs  – Wall Street's most powerful — lost more than 46% of its market cap.

The lowest-paid of the 23 CEOs was Capital One's (COF) Richard D. Fairbanks at $100K at a company that lost just 2% of market capitalization. The best-performing of the group was US Bancorp (USB) which paid its CEO Richard K. Davis $7.32 million as the bank slipped just 0.3 percentage points.

Press reports have suggested that compensation pools at seven of the biggest U.S. banks will total about $156 billion (including salaries, benefits and bonuses) in 2011, which would be 3.7% higher than last year's record breaking number.

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.