Pay for the top spot at the nation's largest banks increased significantly in 2015, with CEOs' compensation at JPMorgan, US Bancorp, Citigroup and Bank of America rising by a fifth or more.
The exception was Wells Fargo, where Chairman and CEO John Stumpf's pay remained flat. Below is a list of the five biggest banks' CEOs by their 2015 compensation, along with the profits and stock returns of the banks they head.
1. Jamie Dimon
JPMorgan Chase & Co.'s (JPM) Chairman and CEO Jamie Dimon saw his pay rise by 35% to $27 million in 2015. Earnings did not quite keep pace with his pay package, rising 12.4% to $24.4 billion. Shareholders didn't do as well as Dimon either: the stock rose 5.5% over the course of the year, not including dividends. On the other hand, that was the best share price performance of any of the banks listed here, and the S&P 500 fell 0.7% (again, not including dividends). JPMorgan is the country's second-largest bank by market capitalization at the time of writing, at just over $216.3 billion.
2. Richard Davis
US Bancorp (USB) Chairman and CEO Richard Davis made $21.7 million in 2015, 20% more than in the previous year. Earnings at the bank rose 0.5% to $5.9 billion, while the stock fell 5.1%. US Bancorp is the fifth-largest bank in the U.S., with a market cap of $70.4 billion.
3. John Stumpf
Wells Fargo & Co.'s (WFC) John Stumpf did not receive the same kind of generous raise as his peers, but he still did alright, making the same $19.3 million as he did in 2014. His pay was not the only thing that was flat last year at Wells. Earnings fell 0.7% to $22.9 billion, and the stock fell 0.8%, slightly underperforming the S&P 500. Wells Fargo is the largest U.S. bank by market cap, at $251.5 billion at the time of writing.
4. Michael Corbat
At Citigroup Inc. (C), the fourth-largest bank by market cap ($125.8 billion), CEO Michael Corbat's pay increased 27% to $16.5 million. Judging by the increase in the bank's profits, he deserved the raise: earnings shot up 135.8% to $17.2 billion. Shares, on the other hand, slipped 4.4% over the course of the year.
5. Brian Moynihan
Bank of America Corp.'s (BAC) Chairman and CEO Brian Moynihan arguably earned his 23% raise as well. BAC's earnings rose 229.0% in 2015 to $15.89 billion. Moynihan made $16 million, but shareholders weren't so lucky: the stock fell 5.9%. Bank of America is the nation's third-largest bank by market cap, at $137.4 billion at the time of writing.
The Bottom Line
Overall, it was a good year for profits at the U.S.'s largest banks, and for the most part CEOs were rewarded handsomely for their trouble. Mr. Stumpf excepted, the five biggest banks' CEOs received raises of 20% or more. All five took home a minimum of $16 million. On the other hand, a sharp sell-off in bank stocks, largely due to fears of serial defaults by heavily indebted frackers, led all but JPMorgan's stock to underperform the market and suffer negative returns, not including dividends.
Disclosure: the author has a long position in Bank of America.