In 2008, Citigroup, Merrill Lynch, and seven other U.S. banks paid out more than $32 billion in bonuses, while receiving $175 billion in taxpayer handouts. The decision sparked public outrage and, not surprisingly, details around bank executive bonuses continue to draw attention.
In some cases shareholders have retaliated against the fat pay cheques of banking moguls. In 2012, Citigroup shareholders voted against then-CEO Vikram Pandit receiving a $15 million pay package for the fiscal year prior, when shares fell by 44 percent.
At an industry level, legislators have also attempted to implement change. In 2010, the U.S. introduced so-called “say on pay” provisions to the Dodd-Frank Wall Street Reform and Consumer Protection Act, allowing shareholders a non-binding vote on executive compensation at least every three years. And this year the EU pushed through legislation that caps bank bonuses at two times a banker’s salary.
Despite these changes, banking bonuses continue to run into the millions. However, when compared to leaders in private equity and hedge funds, banking execs might actually be getting a bit of a raw deal. In our latest Infographic, Firmex takes a closer look at the 2013 compensation packages for leaders in commercial banking, and where they rank in the grand scheme of things.
Presented by Firmex Data Rooms