Bank CEO Compensation Surges: Fraser Leads with $34.5 Million Payout
Wall Street's top bankers have received substantial salary increases, with Citigroup CEO Jane Fraser securing the most significant raise. According to a recent filing, Fraser's 2024 compensation package has risen by approximately 33% to $34.5 million.
Fraser's enhanced pay reflects her success in leading Citigroup through a period of transformation, focusing on enhancing safety and profitability. Citigroup's stock has outperformed its competitors, rising by nearly 20% this year.
David Solomon, CEO of Goldman Sachs, received the second-highest compensation increase among major banks, with his total 2024 pay rising to $39 million. Salomon joined JPMorgan Chase CEO Jamie Dimon, who also received $39 million, at the top of the pay scale. Brian Moynihan, CEO of Bank of America, earned $35 million. Ted Pick, CEO of Morgan Stanley, received $34 million in his first year at the helm.
Wells Fargo CEO Charles Scharf received the lowest payout of $31.2 million. Scharf and Wells Fargo are actively working to address historical challenges. The bank awaits the lifting of a consent order related to a fake accounts scandal that has hindered its growth.
Stock-linked incentives account for a significant portion of the compensation for these bank CEOs. For instance, Fraser's $11.55 million in deferred stock will vest over four years based on meeting specific performance targets.
Fraser's other performance-based awards are tied to metrics that evaluate Citigroup's return to shareholders. Citigroup's revenue increased by 3% to $81.1 billion across its five core divisions. However, the bank incurred $136 million in fines for insufficient progress on consent orders and has revised its return target to a range of 10% to 11%.