Study shows U.S. bank CEO pay dwarfs rest of world

September 23, 2009 by · Leave a Comment
Filed under: Industry News 

It is no surprise that in the world’s largest economy, you would have the highest pay scale.  I do disagree with the comment that it is impossible to recruit the right talent without these huge paychecks, but at the end of the day that is between the board of directors, shareholders and CEO’s.

The real problem is our myopic focus on short-term profits over long-term viability.  That has steered our corporations and specifically our banks to take excessive risk to make gain to satisfy their quarterly results.  This is what keeps creating crisis after crisis and is the source of our “systematic risk”.

Reuters, New York – You wouldn’t know it by his pay stubs, but Jiang Jianqing heads the world’s largest bank.  Jiang, chairman of Industrial and Commercial Bank of China, made just $234,700 in 2008. That’s less than 2 percent of the $19.6 million awarded to Jamie Dimon, chief executive of the world’s fourth-largest bank, JPMorgan Chase & Co.

The contrast illustrates the massive differences in pay among the CEOs of the world’s top banks. The compensation of the CEOs of the largest U.S. banks towers above what’s paid to banking chiefs in other parts of the world, according to a Reuters analysis of pay at the 18 biggest banks by market value.

Excessive compensation at banks is expected to be discussed this week when the Group of 20 nations meets in Pittsburgh. But consensus on the issue remains a distant hope as there continue to be vast differences in how bankers are paid, from the CEO on down.

The United States is home to four of the nine largest banks in the world — JPMorgan, Bank of America Corp, Wells Fargo & Co and Citigroup Inc. It is also home to four of the six most handsomely rewarded bank CEOs.

Click Here to Continue Reading

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!