‘Too Big to Fail’ Pays Off: Big Bank Salaries Rising Faster than Rivals

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.

CEO Pay Up, Average Worker Not so Much

Disney’s Robert Iger got a 45% bigger bonus in 2010 (Phil McCarten/Reuters) Executives in the corner office now make 62 times more than the average worker, and that’s just in bonuses alone. A study done for the Wall Street Journal, found that incentive pay for the chief executive officers of 50 major corporations  jumped 30% [...]

Has the Wall Street Pay Czar Paid Off?

Time to say Goodbye to the Pay Czar Nearly a year and a half ago, Kenneth Feinberg was appointed to overseeing the pay of Wall Street executives and top officials of other companies that had to be bailed out in the financial crisis. Today is most likely his final day on the job of any [...]

Lord Brian Griffiths of Fforestfach (and Goldman Sachs) says his paychecks make you rich

I get the feeling that Brian Griffiths’ words at a panel discussion in London Tuesday might go down in history as some kind of let-them-eat-cakish landmark. Said the economist, a former Margaret Thatcher adviser who was raised to the peerage in 1991 and has been helping make ends meet since then by toiling away as [...]