Top Bank Execs Took Their First Pay Cut In Three Years In 2012
The heads of 15 banks netted $11.5 million on average in 2012, the first pay cut for the masters of the universe in three years.
Last year’s fall in pay coincides with an average drop in net income by more than a fifth across those 15 lenders. But it also comes amid a share price recovery in the sector, with all but two of the banks – BBVA and Credit Suisse – outperforming the FTSE World index in 2012.
Of the 10 bankers that were in office since the beginning of 2011, only three – John Stumpf at Wells Fargo, Stuart Gulliver at HSBC and Brady Dougan at Credit Suisse – enjoyed pay rises.
JP Morgan's Jamie Dimon saw his pay package cut by a fifth last year, to a measly $18.7 million. And he can expect it to drop even further next year thanks to the London Whale episode, the FT notes.
The reduction comes as chief executive pay across other sectors remained stable, indicating a narrowing of the pay premium that financial services companies built up in the credit-fuelled pre-crisis years. Average pay for S&P 500 chief executives serving at least two full years was $11m, a 0.3 per cent decrease according to Equilar.
While investor pressure has curbed banker bonuses in America, the EU will take it one step further and legally cap rewards next year.