Bank Watch

Report: Wells Fargo’s John Stumpf no longer highest-paid bank CEO

John Stumpf, CEO of Wells Fargo, has lost his status as highest-paid U.S. bank CEO to JPMorgan Chase & Co.’s Jamie Dimon, a new report by SNL Financial shows.
John Stumpf, CEO of Wells Fargo, has lost his status as highest-paid U.S. bank CEO to JPMorgan Chase & Co.’s Jamie Dimon, a new report by SNL Financial shows. Bloomberg

Wells Fargo’s John Stumpf has lost his title as highest-paid U.S. bank CEO, a distinction now held by the chief executive of rival lender JPMorgan Chase & Co.

JPMorgan CEO Jamie Dimon was awarded the most compensation in 2014, knocking Stumpf down to second place, according to a report released last week by data firm SNL Financial. The annual report ranks the 10 bank CEOs who received the largest total pay packages, which includes base salary, bonuses and stock awards.

Bank of America CEO Brian Moynihan’s sixth-place ranking was unchanged. Kelly King, CEO of Winston-Salem-based BB&T, fell to ninth place from seventh place.

Stumpf’s total compensation rose to $21.4 million, from $19.3 million in total compensation for 2013.

Dimon ranked ninth in 2013 for his total compensation of $11.8 million. According to SNL, Dimon received no bonus and no stock options in 2013, during which JPMorgan recorded a $380 million loss in the third quarter.

In 2014, Dimon’s pay rose to $27.7 million as JPMorgan's profit for the year increased to $21.8 billion, from $17.9 billion in 2013.

New York-based JPMorgan Chase is the largest U.S. bank by assets. San Francisco-based Wells Fargo is the fourth-largest. Charlotte-based Bank of America is the second-largest.

Moynihan made $15.3 million in 2014. King earned $14.1 million.

Since the financial crisis, pay for top brass at big banks has become a hot-button issue and subjected to new regulations. The 2010 Dodd-Frank financial reform law gave shareholders the ability to cast nonbinding votes on the pay packages of top executives.

More rules impacting financial industry compensation are expected. For example, under a yet-to-be-completed rule required by Dodd-Frank, a broad group of financial services firms would be prohibited from offering excessive incentive compensation.

Also, banks, like other public companies, continue to face pressure from investors who want compensation closely tied to a company’s performance.

According to SNL, median total compensation for bank CEOs has climbed steadily over the past few years.

In 2014, median bank CEO compensation was $644,452, compared with $565,169 in 2013.

In 2010, the median was just over $400,000.

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