In a significant and revealing trend within the U.S. banking sector, the compensation packages for the top executives of major Wall Street institutions have shown a sharp increase, raising concerns about income disparity in the industry. Recent regulatory filings revealed that the chief executives of the six largest U.S. banks—JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Wells Fargo, and Morgan Stanley—received annual pay exceeding $40 million each. Collectively, these executives earned more than $250 million, which is a clear indication of the widening gap between executive compensation and the earnings of average bank employees.
The pay hike for the top six executives averaged a 22 percent increase from the previous year, pushing their average earnings to a staggering 298 times that of their median bank employees in 2024. This disparity raises critical questions, especially as many workers grapple with inflation and stagnant wage growth that have made affordability a pressing concern for families nationwide.
Despite the growing economic challenges for average employees, the CEOs enjoyed remarkable stock market performance, with average stock price gains of 42 percent over the past year. This metric is often viewed as a barometer for executive effectiveness, prompting analysts like Wells Fargo’s Mike Mayo to remark that “it’s bull market banking with bull market results and bull market pay for the CEOs.”
Goldman Sachs’ David Solomon topped the list as the highest-paid CEO, with a total compensation package of $47 million. This included a cash bonus, stock options, and carried interest, reflecting the bank’s strategy to align executive pay with industry standards for asset managers, a move implemented to retain top talent.
Bank of America’s Brian Moynihan saw a significant pay increase of 17 percent, amounting to $41 million for 2025. Citigroup CEO Jane Fraser was awarded $42 million, nearly a quarter more than her previous year’s compensation, which included a substantial retention bonus. Comparatively, Jamie Dimon of JPMorgan earned $43 million, while Morgan Stanley’s Ted Pick received $45 million.
The surge in banker pay coincides with a pivotal year for U.S. banks, characterized by a revival in investment banking and business conditions bolstered by regulatory rollbacks initiated by the previous administration. These changes lifted the market capitalizations of banks that previously faced challenges, allowing them to achieve record profits and potentially signaling a more robust financial outlook in the coming years.
Key regulatory changes have included proposals to allow higher leverage for significant banking institutions and a reevaluation of stress tests affecting capital requirements. Such developments have been interpreted by analysts as signs of increasing confidence in the banking sector’s viability and its future revenue potential.
Some banks, particularly Wells Fargo and Citigroup, have experienced a revitalization in their stock performance after overcoming past difficulties. Citigroup is undergoing a significant restructuring effort, which has significantly improved its market standing. The board credited Fraser for her decisive leadership in steering the firm toward growth, highlighting that over 80 percent of the transformation is now complete.
Wells Fargo’s Charlie Scharf led efforts to lift a $2 trillion asset cap imposed by regulators due to a prior scandal involving unauthorized account openings. Changes in leadership structures, such as combining the roles of CEO and chair—already a common practice among key players like JPMorgan and Goldman Sachs—further underline a shift toward stabilizing governance models in banking.
As these dynamics unfold, the banking industry’s trajectory continues to attract scrutiny, particularly regarding income equality and the sustainability of its current executive compensation practices. With ongoing economic pressures and changing regulatory landscapes, observers will be watching closely to see how these factors influence both executive pay and employee compensation in the future.
