WASHINGTON - Salaries paid to financial services regulators have risen faster than inflation over the past two years, and the fattest, $310,000, goes to New York Fed President Timothy Geithner, according to data obtained and analyzed by American Banker.
Eight federal agencies regulating financial services firms disclosed the names and salaries of their 50 highest-paid employees in response to Freedom of Information Act requests; the 12 Federal Reserve banks provided less information, saying they are not subject to that law.
American Banker then compiled a composite list of the 50 highest-paid regulators across all eight agencies and the 12 Federal Reserve banks, and found that the Fed dominates the list. Thirty-two of the top 50 work for the Fed board, while another 12 are employed by the Reserve banks.
The Fed board's top salary is $225,000, up $10,000 from 2002, the last time American Banker surveyed salaries at the financial agencies.
A few of the agencies, including the Office of the Comptroller of Currency and the Office of Thrift Supervision, voluntarily cap compensation near Vice President Cheney's salary of $202,900; others have no cap. In fact, two of the smaller regulators have no caps and pay some of the highest salaries.
One of the highest-paid regulators is James Skiles, the executive director of the National Credit Union Administration. With a salary of $270,882, including a 12.87% locality differential, he ranks No. 5 in the top 50 and makes more than eight of the Federal Reserve bank presidents.
Three other NCUA officials made the list: General Counsel Robert Fenner, at $248,185; Examination and Insurance Director David Marquis, at $238,798; and Mid-Atlantic Regional Director Edward Dupcak, at $214,165.
The Federal Housing Finance Board is the only other agency to crack the top 50.
Stephen Cross, the Finance Board's supervision director, came in at No. 14, with a salary of $236,133. Over the past two years the board has increased Mr. Cross' compensation almost 10%. His deputy, Christie Sciacca, who makes $211,176, was No. 47.
Both Mr. Cross and Ms. Sciacca moved to the Finance Board in 2002 from the Federal Deposit Insurance Corp., getting raises of 14% and 17%, respectively.
The OCC and OTS cap staff salaries at $201,600. The OCC pays 18 staff members that much, while nine at the OTS pull down the maximum. The OTS said it does not pay bonuses. The salary data provided by the OCC include bonuses, but the agency declined to break them out from base pay. (It said that to do so would violate the employees' privacy.)
FDIC staff salaries top out at $215,000. Chief Counsel William Kroener 3d made the most this year, $214,500, including a $11,500 bonus. Ranking second is Art Murton, the director of the division of insurance and research, at $213,400, including a $10,400 bonus.
The pay of the people who head these agencies - presidential appointees, not career government employees - is set by legislation. It ranges from a low of $145,600 at five of the agencies (the Securities and Exchange Commission, OCC, OTS, NCUA, and Finance Board) to $174,500 for Fed Chairman Alan Greenspan. The other Fed governors make $157,000.
To gauge which agencies have the most high earners, American Banker established a threshold of $200,000 and tallied up how many employees at each agency are paid at least that much.
Again, the Fed came out on top. Every one of its 50 highest-paid employees make more than $200,000 a year. Six make $221,500: Richard Spillenkothen, the director of banking supervision and regulation; Louise L. Roseman, the director of bank operations and payment systems; Karen H. Johnson, the director of international finance; Vincent Rienhart, the director of monetary affairs; Stephen R. Malphrus, the director for management; and David J. Stockton, the director of research and statistics.
General Counsel Scott Alvarez and Associate General Counsel Richard Ashton make $220,000.
The OCC ranks second, with 21 of its 50 best-paid staff members clearing $200,000. Two years ago no one at the Comptroller Office was at that level. Acting Comptroller Julie Williams, who is the first deputy senior comptroller, is paid a base salary of $201,600 and got no geographical differential or other bonus. She made $192,600 in 2002.
The FDIC pays 14 employees more than $200,000; their salaries have risen an average of 6% over the past two years.
Nine OTS employees make more than $200,000, and their salaries are up an average of 10%.
Seven NCUA employees are paid more than $200,000, with an average increase of 6.7%.
At the Finance Board, other than Mr. Cross and Mr. Sciacca, only Judith Hoffman, the director of the office of management, is paid more than $200,000. She makes $200,965. Their salaries increased an average of 8.5% over the two years.
Only two SEC executives get more than $200,000 a year; Associate Regional Director Robert Sollazzo in New York and San Francisco District Administrator Helane Morrison both make $201,118. The highest-paid employee in the SEC's Washington headquarters office is Patrick Von Bargen, the executive assistant to the chairman; Mr. Von Bargen makes $190,382.
Only two Office of Federal Housing Enterprise Oversight employees receive more than $200,000: Chief Operating Officer Stephen Blumenthal, who gets $205,623, and General Counsel Alfred Pollard, who makes $201,625.
