CEOs of the country's largest asset managers, and megabanks with asset management divisions, are finding themselves in the hot seat over their high earnings relative to those of their employees.
The first wave of CEO pay ratio disclosures began last year, drawing scrutiny from Congress as the industry marked a decade since the 2008 financial crisis. Meanwhile, a Pensions & Investments analysis of proxy filings for 11 firms found that top executives received a mix bag as far as raises vs. pay cuts last year.
Overall, five CEOs saw their total compensation drop, while six received a bump in pay over 2017.
Among the proxy filings reviewed, the three executives bringing in the highest pay were Jamie Dimon, CEO of J.P. Morgan Chase & Co., Morgan Stanley CEO James P. Gorman, and BlackRock Inc. CEO Laurence D. Fink, who respectively received $30 million, $28.2 million and $26.5 million in total compensation last year.
While Mr. Fink's total compensation dropped 4.3%, Mr. Dimon's total compensation increased by 6% over the previous year and Mr. Gorman's jumped 14.9%, according to data the firms reported using the Securities and Exchange Commission's preferred calculations.
For this story, P&I examined compensation reported pursuant to SEC rules, which includes changes in pension value and non-qualified deferred compensation. Data reported to the SEC also includes equity-based awards granted during 2018, but not awards granted this year for 2018 performance.
The two highest-paid executives, Messrs. Dimon and Gorman, were among seven CEOs who testified before the House Financial Services Committee on April 10 in a hearing meant to review the country's largest banks 10 years after the financial crisis.