Thursday, December 29, 2011

Bank CEOs out-earned shareholders and employees in 2011

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.


The results?

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:

Stock price

Dec. 31, 2010: $13.34
Dec. 24, 2011: $5.29
Percent change: (60.3 percent)

Earnings per share

2010: ($0.37)
2011 (estimated): $0.04

Pay

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.

5 comments:

Anonymous said...

So the average salary for a BoA employee is over $127,000?? Where does that figure come from?

tarhoosier said...

Gruesome and ghastly figures for the 99%. When the revolution comes Jamie and Brian will know it early on.

Andrew Dunn said...

Anonymous 3:42 -- That's a good point. I've added that information in.

Anonymous said...

An average salary figure of over $127,000 at BoA is total BS. More like half of that. The figure they are quoting probably includes what they claim they provide in "benefits" as part of the "average salary" number. But there is no way that the average PAY is $127,000+!! No way. It is about $60,000 and then the bank says we provide insurance, 401k match, child care, product discounts, etc.....and they cout that in total employee compensation. That is not part of "salary" though.....salary is real $$$$ you can spend.

Andrew Dunn said...

Anonymous 4:05, I'll change it to "compensation," which is more accurate.