Bank of America raises Moynihan's salary to $35 million for the year 2024
In 2024, the CEO compensation packages of major U.S. banks such as Bank of America, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Wells Fargo, and Citi predominantly consisted of long-term equity awards, with base salary comprising only about 10-20% of total pay.
The S&P 500 had strong back-to-back years of about 20% returns in 2023 and 2024, positively influencing CEO pay packages tied to share prices. As a result, the average CEO-to-worker pay ratio for S&P 500 companies, which most large banks belong to, was about 285-to-1 in 2024, reflecting substantial disparities between CEO compensation and median employee pay.
JPMorgan CEO Jamie Dimon's compensation rose 8.3% to $39 million in 2024, according to a filing by the Securities and Exchange Commission. Bank of America's CEO, Brian Moynihan, received a $6 million increase in his compensation, bringing his total pay for 2024 to $35 million. The bank's share price increased 30% in 2024.
Interestingly, Moynihan was the only CEO among the six largest U.S. banks to get a pay cut in 2023. However, the decision regarding the form and value of his incentive award was based on a qualitative evaluation of multiple factors and the company's performance in 2024. $18.25 million of Moynihan's incentive award is tied to the growth of shareholder value and adjusted return on tangible common equity.
The incentive award package for Capital One's CEO, Richard Fairbank, includes 102,440 target shares based on the company's performance from 2025 to 2027. Fairbank will also receive $5 million in RSUs that will vest in 2028. In addition, Capital One gave Fairbank a $31 million year-end incentive award for 2024. Goldman Sachs CEO David Solomon received an $80 million bonus and a 26% raise in 2024, bringing his total compensation to $39 million.
Deposit growth outpaced the industry average in 2024 for Bank of America. Morgan Stanley’s 2025 annual report reveals large management fees and assets but does not specify executive pay. Some headlines allude to excessive CEO pay in banks and financial institutions in 2024, reinforcing this high compensation environment.
However, no information about regulatory approval or purchase licensing rights for these incentive awards is provided in the filings. It's worth noting that while exact 2024 figures for each bank from this data are missing, typical total pay for large bank CEOs can run into the tens of millions of dollars, often driven by bonuses, stock options, and restricted stock units that vest over several years. Given the market trends and typical compensation structures in finance, their CEO pay packages are likely within the $20 million to $50+ million range total compensation, driven by equity awards.
Investing in the shares of S&P 500 companies, including major U.S. banks, proved to be a profitable venture in 2023 and 2024, as the strong returns influenced the CEO pay packages that were largely tied to share prices. In these financial institutions, CEO compensation packages predominantly consisted of long-term equity awards and business performance-based incentives, contributing to substantial disparities between CEO compensation and median employee pay.
