Wall Street Bank CEOs Receive Significant Pay Increases
New York, NY - CEOs of major Wall Street banks have received substantial compensation increases, with Citigroup's Jane Fraser taking the top spot for the biggest raise.
Fraser's total compensation for 2024 surged by approximately 33% to $34.5 million, as disclosed in a recent SEC filing. This boost reflects her efforts in navigating the New York financial giant through safety and profitability improvements. Citigroup's stock performance has surpassed its peers with a 20% gain year-to-date and a 37% increase in 2023.
Citigroup's board asserts that Fraser's strategic vision and execution are sound, leading to this compensation adjustment. Goldman Sachs' David Solomon received the second-highest pay increase among major banks, with his 2024 compensation amounting to $39 million. JPMorgan Chase's Jamie Dimon and Bank of America's Brian Moynihan both earned $35 million, tying for the highest compensation among their counterparts. Morgan Stanley's Ted Pick received $34 million in his first year as CEO.
Wells Fargo's Charles Scharf received the lowest compensation of $31.2 million, as the bank continues to address legacy issues and awaits regulatory approval to lift consent orders related to a previous scandal. The majority of CEO compensation across all banks comprises stock-linked incentives rather than cash. Fraser's compensation, for instance, includes a base salary of $1.5 million, a performance award of $4.95 million, and $11.55 million in deferred stock vesting over four years upon meeting specific targets.
Despite positive financial performance, Citigroup faced setbacks, including fines totaling $136 million for failing to meet progress targets under consent orders. The bank has also adjusted its multiyear turnaround return target to 10-11% from 11-12%.
Jane Fraser was appointed Citigroup CEO in September 2020 and assumed the role officially in March 2021. Under her leadership, the company reorganized into five core divisions, resulting in a 3% revenue increase across all units.