Bank of America increases Moynihan's salary to $35 million for the year 2024.
In the world of banking, CEO compensation packages have seen an uptick in 2024, driven by factors such as bank performance, strategic transformations, and leadership changes.
Bank of America's CEO Brian Moynihan received a 21% increase in his compensation, totalling $35 million. This rise was attributed to the company's "continued success delivering Responsible Growth" in 2024, as the bank's net income rose 2% year-over-year to $27.1 billion.
Similarly, Goldman Sachs CEO David Solomon received an $80 million bonus and a 26% raise, bringing his total compensation to $39 million.
JPMorgan Chase's CEO Jamie Dimon saw an 8.3% increase in his compensation, reaching $39 million in 2024. Wells Fargo CEO Charlie Scharf received $31.2 million for 2024, a 7.6% increase from 2023.
Capital One's CEO Richard Fairbank was not left behind. He received a $31 million year-end incentive award for 2024, and his incentive award package includes $18.25 million tied to growth of shareholder value and adjusted return on tangible common equity. Fairbank will also receive $5 million in RSUs that will vest in 2028, and a $5.5 million deferred cash bonus, to be paid in 2028.
The decision regarding Fairbank's year-end incentive award was based on a qualitative evaluation of multiple factors and the company's performance in 2024. Fairbank's incentive award package also includes $2.25 million based on relative total shareholder return relative to the company's peers over the performance period.
Meanwhile, Discover is in the process of a potential deal with Capital One, pending regulatory approvals. If the deal goes through, Bank of America is proposing a $35.3 billion deal with Discover. The shareholders of both companies will meet on Feb. 18 to discuss the proposed tie-up.
Investment banking total compensation, including bonuses, rose by 10-15% in recent years, with bonuses constituting about 65-80% of base pay. This suggests that top banking CEOs' pay is influenced by deal activity, firm profitability, market conditions, and leadership responsibilities.
In summary, top banking CEO compensation in 2024 has generally increased compared to previous years, influenced by bank performance, market conditions, strategic initiatives such as mergers, and performance-linked pay structures with bonuses and stock options playing major roles.
Finance played a significant role in the increased compensation of top banking CEOs in 2024, with bank performance being a primary factor. Investing strategically, such as through mergers and acquisitions, also contributed to CEO pay increases.
