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The median increase in CEO pay was brisk at 11% in 2012, but slower than the median 16% increase in 2011. Click on column headers to sort.
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Large bank CEOs rake in far more than their small bank peers, but large bank CEO pay represents a small fraction of total payroll expense.
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The SEC is still working on rules for compensation clawbacks, but some banks have adopted stricter policies in response to pressure from activist shareholders like the New York City comptroller's office.
April 30
The ceaseless upward march in bank chief executive pay slowed a bit in 2012.
CEO compensation increased by a median 11% in 2012, according to disclosures made during this year’s annual meeting season. That’s down from 16% in 2011 among the 149 companies covered here, but scant sign of restraint when viewed in light of
Near the top of the heap, JPMorgan Chase (JPM) CEO Jamie Dimon took a pay cut because of the London Whale trading debacle, a set of bets on credit derivatives that racked up losses of more than $6 billion in 2012. Dimon’s total package fell 19% from 2011 to $19 million in 2012, under Securities and Exchange Commission guidelines for presenting compensation. He fell from being the highest-paid CEO in American Banker’s rankings last year to fourth highest this year.
American Express’ (AXP) Kenneth Chenault climbed from second place to first place with a 24% raise (on top of a 37% raise in 2011) to $28 million in 2012.
Pay practices did change in response to say-on-pay votes, where shareholders provide nonbinding verdicts on compensation for top executives.
Overall, investors registered little more dissent during 2012’s annual meeting season than in the past — only between 9% and 10% of a group of 132 banks
A high-profile rejection at Citigroup (NYSE: C) in 2012 prompted the company to reach out to shareholders, however, and Citi said it took a series of steps to sharpen the connection between pay and performance.
Michael Corbat, who became chief executive in October, was paid $12.4 million for 2012 compared with $15 million for the ousted Vikram Pandit in 2011. Upon his departure, Pandit lost about $27 million in unvested stock retention awards. The size of these awards had been a major issue for shareholders. At
Hancock Holding (HBHC)
Among banks with less than $20 billion of assets, William Cooper, CEO of the $18 billion-asset TCF Financial (TCB), remained the highest paid with $6.3 million in compensation in 2012. That was a 30% drop from 2011, but followed a threefold jump in 2010.
Cooper’s salary and a cash bonus accounted for most of his $1.7 million in pay in 2009, but he was awarded no stock that year. When he rejoined the company in 2008 as CEO, Cooper asked that none of his compensation include cash, and the company said no stock was awarded in 2009 because of large previous grants.
Generally, pay at large banks continues to far outstrip pay at small banks: a median of $13.1 million for CEOs at companies with more than $100 billion of assets compared with a median of $1.3 million for companies with less than $20 billion of assets. Despite a slowdown in raises from 2011, however, increases in both groups were swift in 2012 at medians of 13% for small banks to 16% for big ones.
Editor's note: This story originally understated approval in say-on-pay votes at Citi and Hancock Holding.
