Daily Management Review

Top bankers' salaries grew tenfold in 2015


JP Morgan Chase will increase minimum wage of 18 thousand lower rank employees. In numerical terms, it is $ 12-16,5 per hour, according to The Wall Street Journal citing a statement of the company’s general director James Dimon.

Fibonacci Blue
Fibonacci Blue
Amount of allowances to the salary will depend on geographic location of a department where the employee works, as well as "market factors". Currently, the minimum salary in the company amounts to $ 10.15 per hour. 

Many of the employees, who will get the raise, hold positions of tellers and customer service representatives, commented Head of the company. "The allowances will help the bank attract and retain more talented employees", - he added.

Meanwhile, the Financial Times writes that in 2015, payments to large banks’ executives were growing 15 times faster than a year earlier. The study took into account salary, bonuses and pension contributions of top managers of major banks in the US, Europe, Canada and Australia.

Payoffs to 20 highest-paid executives of banks in 2015 rose on average by 7.6%, the newspaper notes. In 2014, the average remuneration has increased only by 0.5%.

A leading banker earned $ 13.1 million on average in 2015. In this case,the bankers on Wall Street have earned twice as much as their European counterparts. Leaders of six US banks - JP Morgan Chase, Goldman Sachs, Citi, Wells Fargo, Bank of America and Morgan Stanley - have received an average of $ 20.7 million. This increase of over 10% for 2015 exceeds their remuneration for 2014. European bankers on average received $ 10.4 million. The FT explains this by the fact that American banks have shown in 2015 the best financial results than their European colleagues.

The 2015 leader became Head of JP Morgan Jamie Dimon. At the last Annual General Meeting, 92% of the bank's shareholders voted to increase his benefits by 36%, to $ 27.6 million. Dimon will receive the full amount only if the bank reaches financial targets set for the next three years.

Second place went to chief executive officer of Goldman Sachs, Lloyd Blankfein. This happened despite the fact that in May, 66% of the shareholders voted in favor of a reduction of his remuneration down to $ 23.4 million from $ 24 million in 2014.

Head of the British Standard Chartered Bill Winters received $ 22.4 million, new Head of the Swiss Credit Suisse Tidjane Thiam - $ 21.1 million. Each of them headed the banks in the summer of 2015. Awards of both included compensation for loss of income as a result of the work change ($ 10 million for Winters and $ 15 million for Thiam).

Citigroup’s Head Mike KCorbat had an increase of 31% in 2015, to $ 16.5 million. More than a third of investors voted against this the annual general meeting of shareholders.

Thus, American banks were twice more generous to their CEO than their European counterparts. This information can create additional difficulties for the US presidential candidate Hillary Clinton, who has been criticized for excessively close ties to Wall Street. At the same time, they will help new British Prime Minister Theresa May, who is going to make results of the shareholders’ vote on remuneration of British companies’ top managers binding.