Bank of America increases Moynihan's 2024 compensation to a staggering $35 million.
Major U.S. Bank CEO Compensation Increases in 2024
In 2024, the compensation of CEOs at major U.S. banks such as Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, and Citi saw an overall increase compared to 2023.
At Bank of America, CEO Brian Moynihan received a significant raise of 21%, bringing his total compensation to approximately $35 million. This increase was mainly driven by equity incentives, as Moynihan's pay was $29 million in 2023. Jane Fraser at Citi also experienced a substantial pay increase, although the exact figure for 2024 is not available, it is noted as the largest rise among big U.S. banks.
Jamie Dimon at JPMorgan Chase saw an 8.3% rise in his compensation to $39 million in 2024. Goldman Sachs CEO David Solomon received an $80 million bonus and a 26% raise, bringing his total compensation to $39 million. Wells Fargo CEO Charlie Scharf received $31.2 million for 2024, a 7.6% increase from 2023.
The exact 2024 figures for Solomon and Scharf, as well as for some other CEOs, are not explicitly detailed in the search results, but the market context implies continued high executive pay consistent with peers.
CEO compensation growth is often tied to stock awards and equity incentives, reflecting company performance and compensation structures in major financial firms. Bank of America's net income rose 2% year-over-year to $27.1 billion in 2024, and the bank's share price increased 30% and deposit growth outpaced the industry average.
Capital One also made headlines with its CEO Richard Fairbank receiving a $31 million year-end incentive award for 2024. The incentive award package for Fairbank includes 102,440 target shares based on Capital One's performance from 2025 to 2027. The increase in Fairbank's pay was determined by the company's "continued success delivering Responsible Growth" in 2024.
The Capital One-Discover deal is still pending regulatory approvals. The proposed deal will be discussed by shareholders on Feb. 18. The increase in Moynihan's pay was determined by the company's "continued success delivering Responsible Growth" in 2024.
Moynihan was the only CEO among the six largest systemically important U.S. banks to get a pay cut in 2023. However, in 2024, he was able to recover from that setback and secure a notable increase in his compensation. The incentive award for Fairbank also includes $18.25 million tied to the growth of shareholder value and adjusted return on tangible common equity for Capital One. Additionally, Fairbank will receive $5 million in RSUs that will vest in 2028 and a $5.5 million deferred cash bonus, to be paid in 2028.
In conclusion, the compensation of CEOs at major U.S. banks increased in 2024, with Brian Moynihan and Jane Fraser experiencing the largest pay increases among the banks mentioned. The exact figures for some CEOs are not yet available, but the trend indicates a general upward movement in CEO compensation. The increases are often tied to stock awards and equity incentives, reflecting the performance and compensation structures of major financial firms.
Investing in the stock of banks with strong financial performance could potentially yield high returns, as demonstrated by the increases in CEO compensation in 2024. This trend showcases the correlation between company success and executive pay in the business of finance.
In 2024, Bank of America's net income rose, contributing to Brian Moynihan's substantial compensation increase, further underscoring the impact of business performance on executive compensation packages.
