Compensation for the CEOs of large and midsize banks
So far, five of the 11 largest U.S. banks have disclosed the 2024 pay packages for their CEOs, and all five chief executives received hefty year-over-year raises.
The banks that have reported to date showed "healthy increases" in pay, largely in equity-based compensation, said Kelly Malafis, a founding partner at the consulting firm Compensation Advisory Partners. Those raises were partly due to banks' strong financial performance last year, following a challenging year in 2023, in which the industry was rocked by a
But the pay bumps in 2024 also reflected banks' efforts to retain top talent, according to Malafis.
The pay packages show the need for banks to "continue to be competitive and retain these CEOs because the financial markets still have some uncertainty going into 2025," she said.
What follows is an overview of the 2024 pay packages for the CEOs of
,
More banks, including Citigroup, Morgan Stanley and many regional banks around the country, will disclose such information in coming weeks.
The CEO pay raises are listed from largest to smallest.
David Solomon, Goldman Sachs
2023 total compensation: $31 million
2024 total compensation: $39 million
Change: +25.8%
For the second year in a row, Solomon's pay package soared by double digits, elevated by an uptick in performance-based restricted stock awards.
His 2024 compensation included $25.9 million in such awards, up from $20.3 million in 2023, when his total pay package jumped 24% year over year, after falling by 28.6% the prior year.
For 2024, performance-based stock units made up 70% of Solomon's annual variable compensation.
Solomon's most recent package also included a $2 million base salary, unchanged from 2023 and 2022; an annual cash bonus of $8.3 million, down from $8.7 million the prior year; and $2.8 million in carried interest, a type of compensation that's often paid out at asset management and alternative investment firms.
Carried interest, which is a new component of
Solomon has been CEO of the investment banking giant since 2018 and chairman since 2019. In recent years, he led the company into consumer banking, only to
In determining Solomon's pay, the board's compensation committee considered
The committee also considered the "ongoing competitive threat for the firm's talent at all levels" from traditional banks, alternative asset managers and other non-banks, plus Solomon's commitment to culture and ongoing risk management investment.
On top of Solomon's 2024 package, in January he was granted a
The one-time, 100% stock-based award, which was also granted to company President and Chief Operating Officer John Waldron, is meant to "reflect the board's desire to retain the current CEO and COO as a senior leadership team," according to the regulatory filing outlining the bonuses. The awards will vest after five years, the filing said.
Brian Moynihan, Bank of America
2023 total compensation: $29 million
2024 total compensation: $35 million
Change: +20.7%
Moynihan's total direct compensation surged in 2024 after declining in each of the two previous years.
The chairman and CEO of the nation's second largest bank by assets received a pay package made up of two components: an annual base salary of $1.5 million, which was unchanged from 2023, and equity incentive awards valued at $33.5 million, up from $27.5 million the prior year.
As in prior years, Moynihan, who has been CEO since 2010, did not receive a cash bonus.
In determining his compensation, the board cited Moynihan's overall leadership and the bank's ongoing success in delivering its years-long "responsible growth" strategy, which focuses on sustainable, customer-focused growth while effectively managing risk, according to a securities filing. The board pointed to
The company returned $21 billion to shareholders in 2024, up 75% from 2023.
Last month, Moynihan
Richard Fairbank, Capital One Financial
2023 total compensation: $26.5 million
2024 total compensation: $31 million
Change: +17%
Unlike other large-bank executives, Fairbank's 2024 compensation package did not include a cash salary, which was similar to how his pay packages had been structured in prior years.
But it did include a deferred cash bonus of $5.5 million that pays out in three years, up from $5 million in 2023. In addition, Fairbank was awarded performance-based share awards worth a combined value of $20.5 million, up from $16.8 million in 2023, and an increase in restricted share units, for a total of $5 million, according to a recent securities filing.
Capital One did not spell out detailed reasons for Fairbank's pay increase, saying that it was based on the company's performance last year. For full-year 2024, Capital One reported total net revenue of $39.1 billion, up 6% year over year. However, its noninterest expenses also rose 6%, while 2024 net income declined nearly 3% from 2023.
The McLean, Virginia-based company is currently awaiting regulatory approval to acquire rival Discover Financial Services in a $35 billion deal that was announced in February 2024. Executives had originally thought they could complete the purchase in late 2024 or early 2025, but there have been delays, including the need for Discover to restate certain financial reports that had been flagged by the Securities and Exchange Commission. Discover
Last month, Fairbank
Jamie Dimon, JPMorgan Chase
2023 total compensation: $36 million
2024 total compensation: $39 million
Change: +8.3%
Last year was
The pay package included an annual base salary of $1.5 million and a cash bonus of $5 million, both of which have held steady for a few years. The bulk of Dimon's compensation in 2024 — $32.5 million — was awarded in the form of performance-based share units, which were structured to link all of Dimon annual equity-based compensation to certain performance metrics.
In determining Dimon's pay, the board "evaluated [his] holistic performance across financial and non-financial performance dimensions, as well as the competitive environment," the company said in a January securities filing. Specifically, it considered Dimon's "continued development of top executives to lead for today and the future, his continued commitment to shareholders and his longstanding exemplary leadership of a premier financial services firm."
Dimon, who turns 69 in March, is one of banking's longest tenured leaders, having served as CEO of the $4.2 trillion-asset
The company recently
Dimon has often said that he would stick around for another five years, though in May he told an analyst that the timeline "is not five years anymore."
In 2024,
Charlie Scharf, Wells Fargo
2023 total compensation: $29 million
2024 total compensation: $31.2 million
Change: +7.6%
Scharf, who's been CEO of
While Scharf's annual base salary of $2.5 million was unchanged from 2019, his total variable compensation for 2024 was $28.7 million, up from $26.5 million the previous year. His latest pay package included a cash bonus of $7.2 million — up from $6.6 million in 2023 — and $21.5 million in performance share and restricted share rights awards, up from $19.9 million the prior year.
In a recent securities filing, the company said that Scharf has shown "strong leadership" in several areas, including "making significant progress in strengthening [Wells'] risk and control infrastructure, which remains the company's number-one priority." The board also recognized Scharf's leadership in "driving strong financial performance" in 2024, increasing earnings per share by 11% compared with 2023 and returning about $25 billion of capital to shareholders.
Wells, which has been trying to get out from under longstanding regulatory issues, was
Wells continues to operate under an asset cap, but some analysts think it could be lifted this year.
