Wall Street Returns to the "Gilded Age": CEOs of Six Major Banks Earn Over $40 Million Annually, Surpassing Post-2008 Crisis Record
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Wall Street’s pricing for bank CEOs is returning to pre-financial crisis levels. According to Bloomberg’s compiled company disclosures, the annual total compensation of the chief executives of America’s six largest banks has all reached or exceeded $40 million, surpassing the records set in 2006 and 2021.
Bank of America CEO Brian Moynihan’s compensation rose 17% year-over-year to $41 million last year. Citibank CEO Jane Fraser’s 2025 compensation was raised 22% to $42 million.
Higher CEO compensation is appearing in tandem with improved industry performance. According to Bloomberg, top U.S. financial institutions have recorded their largest annual profits since 2021.
For investors, this round of compensation increases on one hand reflects improvements in profits and business momentum, while also reigniting attention on costs and governance.
Despite executive pay packages facing shareholder questions, they usually pass during voting. Meanwhile, as AI increases the sensitivity of spending in technology and labor, major bank managers are facing more frequent scrutiny of the “cost curve.”
Compensation across the board surpasses $40 million, setting new highs since the 2008 crisis
Bloomberg data show that the annual total CEO compensation of America’s largest banks has generally crossed the $40 million threshold and the total amount exceeds the peaks of 2006 and 2021. Bloomberg points out, after years of restraint following the 2008 global financial crisis, Wall Street is now paying CEOs record compensation.
In disclosed cases, Goldman Sachs CEO David Solomon’s 2025 compensation is $47 million, the highest among peers, up 21% year-over-year. Bank of America’s Brian Moynihan and Citi’s Jane Fraser have reached $41 million and $42 million, respectively.
“Boom year” profits support raises: Trading, lending, and M&A rebound
The immediate backdrop for rising compensation is stronger industry profits. Bloomberg notes that America’s top financial institutions posted their highest annual earnings since 2021, with the rebound in trading, lending, and M&A activity jointly boosting performance and bonus pools.
Compensation consultant Alan Johnson, managing director at Johnson Associates Inc., told Bloomberg, “CEOs had a very good year in terms of compensation,” and “Banks performed very well, had little loss, and profits were significant—I think they managed very well.” In this narrative, CEO compensation and the wider bonus pool increase in tandem.
Boards bet on “turnaround” and “retention”; high salaries as incentives
Some increases have clear governance signals. Citi’s raise for Jane Fraser’s compensation is seen as a vote of confidence from the board in her turnaround efforts, particularly after the company lagged peers for years.
At Goldman Sachs, the pay discussion is more about “retention.” Bloomberg says that although the $80 million retention bonuses for David Solomon and President John Waldron were once criticized as “excessive,” the compensation plan still won majority support last year, with the bank arguing the move was to retain key executives in competition with cash-rich private market investors.
Mike Mayo, head of U.S. large bank research at Wells Fargo & Co., told Bloomberg there’s a link between compensation and performance: “A large part of their pay is in stock, which helps align their interests with shareholders.”
Dissent persists, but votes are smooth; cost issues heat up
Executive compensation is not without resistance. Bloomberg notes that pay packages have faced some shareholder opposition but usually encounter no major hurdles during votes.
At the same time, concern over expenses and compensation in the industry is rising. Bloomberg says that with the rise of AI sparking greater concern about staffing and tech investment, major bank executives are being frequently pressed about how to pursue income growth while controlling costs.
For investors, this means that “high salaries return” is likely to combine with “cost control” as dual focus areas for future earnings seasons and compensation votes.
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