In a research note filled with data, banking industry analyst Dick Bove of Rochdale Securities laid out Thursday how bank CEO salaries compared with shareholder value and compensation given to the bank's employees in 2011.
Thursday, December 29, 2011
Despite earnings per share increasing more than 13 percent at the two dozen banks the securities firm studies, stock prices fell more than 30 percent. CEOs, however, brought in about 65 more times than the average employee salary.
"What is clear, assuming I have the numbers right, is that CEOs of banks are doing considerably better than bank employees and bank shareholders," Bove writes.
At Bank of America, the numbers break down thusly:
Dec. 31, 2010: $13.34
Dec. 24, 2011: $5.29
Percent change: (60.3 percent)
Earnings per share
2011 (estimated): $0.04
CEO Brian Moynihan's take-home pay: $2,259,521
Moynihan's "expensed compensation": $1,940,069
Average employee compensation: $127,907
Moynihan take-home/employee average: 17.7
The CEO with the largest salary was JPMorgan Chase and Co.'s Jamie Dimon, who took home $41,990,521 after exercising nearly $23 million worth of stock options. That put his pay at 365.6 times the average employee salary.
Edit: The "average employee compensation" at Bank of America is derived from taking total compensation expense and dividing by the total number of employees.
Posted by Andrew Dunn at 2:09 PM