As most people know, last year was a tough year for bank CEOs- especially at bailed out institutions. Ask Kenny boy or Vikula if they'd like to repeat 2008 and you'd probably hear a resounding 'hell no'. Just how bad was it? So bad the average compensation for CEOs at 20 banks that got some form of government handout was a pedestrian 37% higher than the average for S&P 500 heads of state.
Lenders including Bank of America Corp. and Wells Fargo & Co. paid CEOs an average of $13.8 million last year, topping the $10.1 million for S&P 500 leaders, according a report released today by the Institute for Policy Studies. Average CEO pay was 430 times larger than for typical workers, and at nine of 20 banks the value of stock options soared $90 million in a year, the Washington-based group said, citing proxy statements.
Get the popcorn ready for the moment of realization when the bonus theater resumes this fall. No doubt members of the compensation firing squad in DC will wind up looking at each other in a bit of a haze when they think through the burning question on their minds. Who would be careless and thoughtless enough to encourage these bank CEOs to take their compensation in the form of stock which could double instead of cash?
Bank CEOs Paid More Than S&P 500 Chiefs, Study Shows [Bloomberg]