Citigroup chief executive Jane Fraser closed the pay gap with her male rivals after getting a substantial raise for 2024. The bank raised Fraser’s pay by 33% to US$34.5m.

That was in line with the pay received by the heads of the other top US banks. In all, the CEOs at the six largest US banks saw their pay rise 21% in aggregate, with the bulk in bonuses and paid out in stock or stock options.

Citi’s board said Fraser’s pay raise was based on her execution of the bank’s turnaround strategy. Her priorities are sound, the board said, “and she is executing on them promptly and thoughtfully.” Those priorities include executing the bank's risk and control transformation; aligning its organisational structure to its business strategy; and increasing accountability, transparency and focus of execution for its businesses.

Morgan Stanley paid CEO Ted Pick US$34m for 2024, his first year in the top job. That compared to US$25m for his last year as president of the bank – which included a significant pay raise.

Bank of America boosted CEO Brian Moynihan’s pay by 21% to US$35m. Moynihan was the only top bank CEO to see his pay cut in 2023. BofA's board raised Moynihan’s pay after the long-serving CEO delivered “responsible growth” in 2024 and a 30% increase in the bank’s share price. The board also highlighted the bank’s performance in global banking, where it gained share in investment banking fees.

Wells Fargo boosted pay for CEO Charlie Scharf by 8% to US$31.2m for his performance in 2024.

JP Morgan lifted the pay of its long-serving CEO Jamie Dimon by 8% to US$39m. Dimon’s pay rise came as the bank reported another record year of revenue and earnings.

Goldman Sachs boosted the pay of CEO David Solomon by 26% to US$39m, matching Dimon in pay at least. Goldman’s board also paid Solomon a US$80m retention bonus to keep him in his seat for another five years. Solomon’s second-in-command, John Waldron, was also awarded a US$80m five-year retention bonus.

European investment bank bosses are also expected to get good pay rises for 2024, although most are a long way behind their US peers. Most banks have not yet disclosed bonuses for last year, although Barclays said it paid CEO CS Venkatakrishnan £10.5m (US$13.3m) for 2024, more than double the £4.6m he received for 2023.

Source: IFR