Bank CEOs took home millions in pay and compensation in 2015
The list of top-paid executives in the U.S. banking industry offers few surprises, with one notable exception. The king of the compensation mountain doesn’t work for the most famous nor the biggest bank, but for an institution that’s little known on the national stage.
Kevin Cummings, chief executive of Investors Bancorp Inc. ISBC, +1.12% beat bigwigs at more dominant players in the industry to be the top-earning bank CEO in 2015, according to an analysis by S&P Global Market Intelligence.
Cummings took home roughly $20 million in salary and bonus last year to edge out John Stumpf at Wells Fargo & Co. WFC, +2.42% who received $19.3 million. Cummings saw his compensation package skyrocket 620% year-over-year after the regional institution in 2015 converted from a mutually held bank to a fully public company with a market capitalization of $3.4 billion, helping its stock surge 11% last year.
James Dimon of J.P. Morgan Chase & Co. JPM, +3.32% was third with total $18.22 million in compensation while Richard Fairbank of Capital One Financial Corp. COF, +2.60% in fourth place earned $18.01 million. Citigroup Inc.’s C, +5.09% Michael Corbat came in fifth with $14.60 million while Brian Moynihan of Bank of America Corp. BAC, +0.08% made a few bucks less at $13.72 million.
CEOs at Bank of New York Mellon Corp. BK, +2.54% Flagstar Bancorp Inc. FBC, +6.55% Northern Trust Corp. NTRS, +3.08% and PNC Financial Services Group Inc. PNC, +1.40% rounded out the remaining spots in the list.
S&P Global’s data showed only three of the 10 chief executives on the list getting pay cuts in a year that witnessed the financial sector significantly under perform the broader market. Financial stocks fell 3.5% in 2015 and are down nearly 9% this year as banks struggle to boost profitability in a low interest rate environment. The S&P 500 slid 0.7% last year and fell 1.1% year to date.
The CEOs’ multimillion compensation packages also highlight the gap in pay between those in the C-suite and the lowly bank employee toiling away in the front office. The average branch manager earned $54,820 a year while personal bankers made $35,937, according to PayScale.