Shareholdings of CEOs at JPMorgan and Goldman Sachs surged by $314m far outstripping bosses at US and European rivals.
The bankers running JPMorgan Chase and Goldman Sachs saw their shareholdings rocket in value by $314m last year due to the stock market surge following Donald Trump’s election as US president.
The JPMorgan boss, Jamie Dimon, and the Goldman Sachs chief executive, Lloyd Blankfein, enjoyed rises of more than $150m (£115m) each in the value of their stock and options in the banks they run, according to an annual review of bank CEO pay by Equilar for the Financial Times (paywall).
The other 18 best-paid bank chief executives in the world fared less well, with average gains of $4m in their stock-related holdings last year.
Dimon was also the best-paid banking boss in the world for the second year running, raking in $28.2m of pay, bonus and pension contributions last year. The Morgan Stanley chief executive, James Gorman, came second at $22.5m, followed by Blankfein at $22.3m. Blankfein was the world’s best-paid banker in 2013 and 2014.
However, the average remuneration for the top 20 chief executives fell last year, the review found, to $12.5m, from $14.2m in 2015. The Bank of America boss, Brian Moynihan, registered a big increase, of 23% to $20m.
Shares in US banks soared after Trump’s victory in the 9 November election, with Goldman’s share price rising 24% in the last seven weeks of 2016.
In Europe, bank bosses earned $8.5m on average, less than half of what their US peers made. HSBC’s Stuart Gulliver enjoyed the biggest rise among European banking chief executives, up 32% in constant currency terms. The bank said this was due to his move to a new long-term incentive plan, which was recorded differently by Equilar than his previous bonus awards. Without this change in treatment his pay would have been up 4.5%.
Credit Suisse boss Tidjane Thiam, who previously ran UK insurer Prudential, was paid $9.9m, after outraged shareholders forced the Swiss bank to cut planned bonuses for him and his top executives by 40%.
After the Trump victory, Deutsche Bank’s share price fell by nearly 24% last year, reducing its chief executive John Cryan’s stock holdings by more than $4.5m.
John Cryan, charged with turning around Deutsche Bank, was the second-worst-paid banking boss, receiving $5.2m. BNP Paribas’s Jean-Laurent Bonnafé was bottom of the list at $4.5m, although his pay was up nearly 14% on the previous year.