Current Events > Wall Street's Five CEOs Get Biggest Payday Since 2006

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Wall Street CEOs are getting paid the big bucks again.

Goldman Sachs Group Inc. and Citigroup Inc. said Friday that they gave their CEOs raises for 2017, meaning all five large U.S. banks with significant trading and investment-banking operations have done so.

The chief executives of the banks, which include JPMorgan Chase & Co., Bank of America Corp., and Morgan Stanley, were paid on average $25.3 million for their work last year, up 17% from 2016, according to filings with the U.S. Securities and Exchange Commission. For the group as a whole, combined total compensation of about $126 million is the highest annual tally since before the financial crisis.

The gains mark the fifth consecutive year in which pay rose for Wall Streets top CEOs. In 2017, the increases reflected stronger profits for banks driven by a growing economy, rising employment, loosening regulations under President Donald Trump and an improving interest-rate backdrop for lending.

Citigroup was the latest to report that it was increasing the bosss compensation. CEO Michael Corbat was paid $23 million for his work in 2017, up 48% from his $15.5 million payday in 2016. Goldman Chairman and CEO Lloyd Blankfein was awarded a $24 million pay package, up 9% from the prior year.

Most of the annual compensation announced over the past month at the nations largest banks comes in the form of incentive bonuses, often stock-based and not cashed until later. And all the pay packages still pale in comparison to Mr. Blankfeins $68.5 million award for 2007 when trading profits and risk-taking drove results for Goldman and its peers.

Still, this bonus season for Wall Street CEOs is in many ways the best in more than a decade. All five CEOs were awarded at least $20 million, something that hasnt happened since 2006, according to a Wall Street Journal review of banks proxy statements. Mr. Corbat, Bank of America CEO Brian Moynihan and Morgan Stanley chief James Gorman each enjoyed their best annual pay packages as chief executive.

Mr. Blankfein received a cash salary of $2 millionsteady from 2016, when he got a pay cutplus a cash bonus of $4.4 million and the remainder in stock units whose value will depend on how Goldman does over the next few years, according to a regulatory filing Friday.

That puts him in the middle of the pack among Wall Street chiefs. JPMorgan Chase & Co.s James Dimon got a 5% raise to $29.5 million. Mr. Gorman followed at $27 million after a 20% pay raise, while Wells Fargo & Co., which doesnt have a large Wall Street presence, hasnt yet disclosed its CEOs compensation.

Goldmans revenue in 2017 rose 5%. Setting aside the impact of a hit from the recently passed tax-overhaul law, its return on equity was 10.8%, one of only two banks to crack double digits.

Citigroup posted a loss of $6.2 billion for 2017, though that was because of a one-time charge the bank had to take to prepare for the new tax law. The board said it had considered Citigroups underlying results, as well as the banks increased shareholder dividends and its passing grade on the Federal Reserves stress test.

It has been a long road for Mr. Corbat to crack the $20 million pay mark. For his first full year as CEO, 2013, he was awarded $14.5 million. The following three years, his pay wavered between $13 million and $16.5 million, as Citigroup struggled to increase profitability and break out of past regulatory problems.

For his work in 2017, Mr. Corbat is getting a cash bonus of $6.45 million, to go along with his $1.5 million salary. The rest of the package comprises stock that is dependent on the banks performance.

Last year, Citigroups board cut his pay because of the firms performance relative to its financial targets. This year, the board said Mr. Corbat had demonstrated exceptional leadership in multiple critical areas, including risk management and talent management.
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https://www.wsj.com/articles/wall-streets-top-ceos-take-home-126-million-for-2017-1518807014?mod=ITP_businessandfinance_0&tesla=y
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So?
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SK8T3R215 posted...

Goldman Sachs

https://www.youtube.com/watch?v=1W7c8QghPxk
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$4 million raise for themselves, $2.5 million total in one time bonuses to lower employees.

Yup, this tax reform is benefiting the middle class most of all.
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DarkChozoGhost posted...

Yup, this tax reform is benefiting the middle class most of all.

its sad how easily people bought the scam
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