Banks may have been the hardest hit this year in the stock market, but the CEOs who run them are doing just fine.
According to data from Rochdale Securities analyst Dick Bove, the heads of major banking groups including JPMorgan Chase (JPM), Goldman Sachs (GS) and Bank of America (BAC) are out-earning their employees and shareholders even as shares of bank stocks as a group lost about 26% this year.
Bove found that while the 23 financial institutions he follows saw their stock prices and market cap drop by more than 30% and 11%, respectively, bank CEO compensation averaged $7.74 million. That means the banking heads brought in 50 to 100 times the average worker.
Take BofA’s CEO Brian Moynihan who will earn $2.26 million this year while his bank’s market value dropped 60% – the worst in Rochdale’s study.
Chase CEO Jamie Dimon will earn $41.9 this year — the most among the bank CEOs in Bove’s coverage list — for a bank that saw its stock lose roughly 23% this year.
There’s also Goldman’s Lloyd Blankfein whose compensation was nearly $22 million, while the investment bank he runs — Wall Street’s most powerful — lost more than 46% of its market cap.
The lowest-paid of the 23 CEOs was Capital One’s (COF) Richard D. Fairbanks at $100K at a company that lost just 2% of market capitalization. The best-performing of the group was US Bancorp (USB) which paid its CEO Richard K. Davis $7.32 million as the bank slipped just 0.3 percentage points.
Press reports have suggested that compensation pools at seven of the biggest U.S. banks will total about $156 billion (including salaries, benefits and bonuses) in 2011, which would be 3.7% higher than last year’s record breaking number.