Wall Street returns to the "Golden Age": The annual salaries of the heads of the six major banks exceed 40 million, setting a new high since the 2008 crisis

Wall Street's pricing of bank leaders is returning to pre-financial crisis levels. According to Bloomberg's compilation, the annual total compensation for the CEOs of the six largest U.S. banks has reached or exceeded $40 million, surpassing the records set in 2006 and 2021.

Bank of America CEO Brian Moynihan's compensation rose 17% year-on-year to $41 million last year. Citigroup CEO Jane Fraser's salary for 2025 was raised by 22% to $42 million.

The higher CEO compensation coincides with an upturn in the industry. According to Bloomberg, top U.S. financial institutions recorded their largest annual profits since 2021.

For investors, this round of rising compensation reflects improvements in profits and business momentum on one hand, while also reigniting concerns about costs and governance on the other.

Although executive compensation plans have faced scrutiny from shareholders, they typically pass in votes. Against the backdrop of rising sensitivity to technology and labor costs driven by artificial intelligence, major banks' management teams are also facing more frequent questioning about the "cost curve."

Compensation across the board surpasses $40 million, setting a new post-2008 crisis high

Bloomberg data shows that the annual total compensation for CEOs of the largest U.S. banks has generally crossed the $40 million threshold, and the total amount exceeds the peak levels of 2006 and 2021. Bloomberg points out that after years of restraint following the 2008 global financial crisis, Wall Street is issuing record compensation to CEOs.

In disclosed cases, Goldman Sachs CEO David Solomon's 2025 compensation is $47 million, the highest among peers, representing a 21% year-on-year increase. Bank of America's Brian Moynihan and Citigroup's Jane Fraser also reached $41 million and $42 million, respectively.

Profitable "bumper year" supports salary increases: trading, lending, and mergers return

The direct backdrop for rising compensation is the strengthening of industry profits. Bloomberg states that top U.S. financial institutions recorded their largest annual profits since 2021, with a rebound in trading, lending, and merger activities boosting performance and the bonus pool.

Alan Johnson, managing director of compensation consulting firm Johnson Associates Inc., told Bloomberg, "CEOs have had a very good year in terms of compensation," adding, "Banks are performing well, with minimal losses and substantial profits; I think they are managing very well." Under this narrative, CEO compensation and the broader bonus pool adjustments form a positive feedback loop.

Board bets on "turnaround" and "retention," high salaries serve more as incentive tools

Some of the increases carry clear governance signals. Citigroup's increase in Jane Fraser's compensation is seen as a vote of confidence from the board in her ability to turn the company around, especially after years of underperformance compared to peers. Goldman Sachs' compensation discussions are more focused on "retention." Bloomberg reports that despite the criticism of the $80 million retention bonuses for David Solomon and President John Waldron as "excessive," the bank still received majority support for its compensation plan last year, arguing that this move is to retain key executives when competing with well-funded private market investors.

Mike Mayo, head of large bank research at Wells Fargo & Co., told Bloomberg that there is a link between compensation and performance, stating, "A significant portion of their compensation is paid in stock, which helps align their interests with those of shareholders."

Opposition persists, but voting goes relatively smoothly, cost issues heat up

Executive compensation is not without resistance. Bloomberg points out that the compensation plan has faced some opposition among shareholders, but typically does not encounter significant obstacles during voting.

At the same time, the industry's focus on costs and compensation is intensifying. Bloomberg notes that with the rise of artificial intelligence raising higher concerns about employee and new technology investments, executives at major banks are increasingly being questioned on how to pursue revenue growth while controlling expenses.

For investors, this means that the "return of high salaries" is likely to be observed alongside "cost control," becoming dual focal points in future earnings seasons and compensation votes.

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