The pay bonus for working at a “Too Big to Fail” bank is only getting bigger.
Outsized paychecks are often cited as one of the reasons for the financial crisis. So what are the executives at the biggest banks doing? They are upping their pay. In fact, pay at the big banks is not rising just for CEOs and investment bankers but for everyone.
According to a new study by bank research website, BankRegData.com, the gap between what the largest banks pay and their smaller rivals has risen dramatically since the financial crisis. Last year, the average compensation expense (salary plus benefits) at banks with at least $1 trillion in loans for all employee was 96,355. That compares to pay of $60,755 at banks with less than $100 million in loans.
Of course, large banks have always paid more than smaller banks. But, recently, big banks have been upping their pay much faster than their smaller rivals. Last year, pay at the largest banks rose 6.7%, far more than the 3.7% hike in pay that employees at other banks received. And that was on top of 9% pay raise in 2009 for the big banks. The result: Last year, the salaries at the big banks were 59% higher than those being paid by their much smaller rivals. That’s up from a pay gap of just 43% in 2008.









