This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Bank of America agreed to pay CEO Brian Moynihan $41 million for 2025, the bank disclosed Friday. With that, a perhaps surprising trend has emerged among the six largest U.S.-based global systemically important banks: The longer a CEO has served, the lower his or her raise was in 2025, generally. Jamie Dimon, who has led JPMorgan Chase since 2006, received a 10.3% ...

By Todd Gillespie   Citigroup Inc boosted the pay of Chief Executive Officer Jane Fraser to $42 million for 2025, putting her among the highest paid US banking heads.  The 22 per cent increase, disclosed in a filing Thursday, follows a year in which Citigroup’s stock rose 66 per cent, more than any other Wall Street bank. The pay bump puts Fraser’s total package for the year just $1 million behind that of JPMorgan Chase & Co.’s Jamie Dimon.     Fraser’s pay bump is another sign of confidence from the bo ...

Citigroup CEO Jane Fraser's pay rises to $42 million after banner year | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Jane Fraser CEO, Citi, speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2023. REUTERS/Mike Blake/File Photo [Purchase Licensing Rights, opens new tab]- Companies[Citigroup Inc]Follow[Goldman Sachs Group Inc]Follow[Morgan Stanley]FollowFeb 12 (Reuters) - Citigroup [(C. ...

The most important asset for Tesla is Musk. Many of these investors see the success of Tesla inextricably linked to Elon Musk. You hire a CEO to advance your company and grow your company.And look at what happened with shares of Tesla. You are rewarded if he meets the metrics that are laid out. Tesla CEO Elon Musk was just awarded the biggest CEO package ever.With a potential value of $1 trillion, Musk is already worth more than $650 billion following the release of that 2018 pay package. After a lengthy le ...

Core Insights - Elon Musk's pay package, potentially valued at up to $1 trillion, underscores the ongoing rise in CEO compensation despite stagnating worker pay and mixed shareholder rewards [2][3] - Musk's wealth, exceeding $660 billion, positions him as the richest individual globally, with his Tesla pay package reinstated and a potential SpaceX IPO on the horizon [3] - CEO compensation has surged by 1,094% over the past 50 years, contrasting sharply with a mere 26% increase in typical worker compensation [4] CEO Compensation Trends - The median total compensation for S&P 500 CEOs reached $17.1 million in 2024, marking a nearly 10% increase from 2023, with CEOs earning 192 times more than the average employee [5] - Stock awards constitute 72% of CEO pay packages in 2024, with their median value increasing by 15% that year [7] - Musk's pay package is entirely based on stock awards tied to performance milestones, with no base salary included [8][9] Performance and Pay Correlation - There is a weak correlation between CEO pay and company performance, as indicated by a 2021 MSCI study, which found that average-performing CEOs earned only 4% less than top performers [10][12] - The shift from stock options to stock awards aims to align CEO incentives with long-term company performance, although the effectiveness of this strategy remains debated [13] Employee Compensation Considerations - Some economists suggest increasing stock awards for employees to bridge the compensation gap between employees and CEOs, with Employee Stock Ownership Plans (ESOPs) being one potential solution [14][15] - Employee-owned businesses reportedly exhibit higher productivity and lower turnover rates, contributing to overall competitiveness [15][16]

Group 1 - Goldman Sachs CEO David Solomon's compensation for 2025 increased by 21% to $47 million, marking his highest pay hike to date [1][4] - Solomon's pay structure includes a base salary of $2 million and a bonus of $45 million, which consists of cash, carried interest, and shares [2][8] - In comparison, JPMorgan Chase's CEO Jamie Dimon's compensation rose by 10.3% to $43 million for 2025, while both earned $39 million in 2024 [1][9] Group 2 - The pay increase for Solomon is attributed to record management fees and revenue growth in Goldman Sachs' asset-management and banking divisions [4][8] - Goldman Sachs reported strong Q4 results, with profits exceeding Wall Street expectations, driven by increased dealmaking and trading activities [4] - The company's stock rose nearly 54% in 2025, outperforming competitors like Morgan Stanley and JPMorgan, although it lagged behind Citigroup [4] Group 3 - Solomon's retention award of $80 million, approved by shareholders, is set to vest in January 2030, with John Waldron viewed as his potential successor [5][7] - Waldron's appointment to the board occurred shortly after receiving the retention bonus, highlighting his rising prominence within the company [7] Group 4 - David Solomon has been with Goldman Sachs since 1999 and became CEO in 2018, succeeding Lloyd Blankfein [6]

If the CEO is paid like a savior but performance-tracked like an intern, sell that stock. ...

Core Viewpoint - The article discusses the compensation of Berkshire Hathaway's Vice Chairman Greg Abel, highlighting the significant difference between his pay and that of the company's founder, Warren Buffett, while also addressing the implications of this shift in compensation structure for the company and its future direction [2][4]. Compensation Comparison - Greg Abel's total compensation, including stocks and noncash awards, exceeds the median of over $16 million for S&P 500 CEOs, with many top executives earning more than $25 million [2]. - Warren Buffett's annual salary is notably low at $100,000, with additional personal security costs, and he has historically returned half of his salary to cover personal expenses [2]. Share Ownership and Investment - Abel currently owns Berkshire shares valued at approximately $171 million, which is considered a significant amount by investors [3]. - Investor Jonathan Boyar suggests that Abel should invest more of his personal wealth in Berkshire stock to align his interests with those of shareholders [3]. Future of Berkshire Hathaway - The article suggests that Abel's increasing salary may indicate a trend towards "normalization" of executive compensation at Berkshire, potentially making the company more similar to its corporate peers [4]. - Professor Randall Peterson notes that the transition may take a long time and could be influenced by Buffett's eventual departure [4]. Performance Metrics - As of early 2026, Berkshire Hathaway's stock performance has lagged behind the S&P 500 by approximately one percentage point, with the S&P outperforming Berkshire's A shares by 7.0 percentage points in the previous year [7].

Company Overview - Elon Musk, co-founder of Tesla Inc, is currently the world's richest man with an estimated net worth of $480 billion and has the potential to become the first trillionaire based on performance criteria at Tesla [1][5] - Tesla is recognized as a pioneer in high-quality electric vehicles (EVs), utilizing electric motors and power systems inspired by Nikola Tesla [2] SpaceX and Market Position - SpaceX, founded by Musk, is the leading private space company globally, primarily due to its reusable Falcon rockets, which have completed nearly 500 launches [4] - The company dominates the civilian satellite-based internet market through its subsidiary Starlink, which has over 7,000 satellites and 8 million subscribers, contributing to approximately 80% of SpaceX's annual revenue [4] Compensation Structure - Tesla's board has approved a $1 trillion performance-based equity compensation package for Musk, which was supported by 75% of shareholders [5][6] - The compensation package consists of 424 million restricted stock units (RSUs) that will be unlocked in 12 tranches based on specific operational goals, including delivering 20 million vehicles and achieving $400 billion in EBITDA [6][7] Industry Compensation Trends - The compensation ratio of Fortune 500 CEOs to median workers in the US has remained around 200:1 for two decades, with significant variations across different companies [7] - In India, the median compensation for Nifty 50 CEOs is ₹22.6 crore ($2.6 million), with a ratio of 700:1 to the median worker [8] Societal Implications - The debate exists on whether society should moderate the significant pay differences, with arguments for both shareholder rights and the potential societal impact of extreme compensation packages [9][10] - Recommendations for improving the median worker's earnings in India include enhancing skills and productivity, which could help address the disparity in compensation ratios [11]

Core Insights - Warren Buffett's final annual letter as CEO of Berkshire Hathaway highlights the concerning trend of escalating CEO compensation, particularly in light of Elon Musk's revised pay package [1][2] Group 1: CEO Compensation Trends - Buffett criticizes the growing trend of CEOs increasing their own pay, driven by envy and greed, leading to a cycle of pay hikes [2] - The practice of disclosing CEO pay, intended to create self-awareness, has backfired and turned into a competition for higher pay [3][4] - CEOs leverage their peers' compensation to justify their own pay raises, which also leads to increased remuneration for their directors [4] Group 2: Broader Implications and Reactions - The issue of CEO compensation has sparked intense debate, with industry leaders like Rivian's CEO receiving substantial pay packages, such as a potential $4.6 billion over the next decade [5] - Critics, including Senator Bernie Sanders, highlight the widening wealth gap, noting that the top 0.1% own nearly a quarter of U.S. stock market wealth while the bottom 50% hold just 1% [6] - Musk defends his compensation package, arguing that it is tied to Tesla's future valuation, despite criticisms regarding the company's valuation [7]