Wall Street is abuzz with the kind of salary hikes that the top executives have been receiving this past year. Even though the general mood of the company has been in a negative decline, most top executive positions have been receiving major hikes in their salaries. Ever since the turmoil that was created in the financial markets early this year due to the oil prices crashing, the general financial market seems to be following a mildly recessive pattern as well. The markets are still at a stagnant low.
The interesting part of the financial market though is the fact that the company CEO’s have still posted surprising pay hikes despite the bad performance last year. JP Morgan was the only company that had a CEO pay hike due to the strong profit growth it posted last year. The Bank of America (NYSE: BAC) chief Brian Moynihan surprised investors and the general market when he managed to retain his position at the helm of the investment bank and managed to get a hike in his general pay scale. Brian Moynihan had elicited a coup against his ill performance in the last financial year.
Reports state that Moynihan managed to antagonize a majority of the board members but was still able to retain his position along with a 23 percent hike in salary. Reports also state Moynihan as mentioning that the salary received by him is nothing in comparison to most of the CEO’s in the market. Amongst the private banking sector, Brian Moynihan is one of the lower paid CEO’s. JP Morgan’s Jamie Dimon has reportedly received a very generous salary package of 27 million dollars while the Goldman Sachs chief received a 23 million dollar salary package hike despite a poor and slumping performance.
On the other hand, Brian Moynihan was due to receive a complete package of 16 million dollars under the condition that the company performance ensured returns on assets invested into the firm. The rate of expected return on assets was expected to be a minimum of eight percent. Moynihan’s base salary was estimated at 1.4 million dollars per annum while the rest was the performance-based additional bonus. Brian Moynihan’s salary for the year 2014 was 13 million dollars, however, this year he managed to secure an impressive 23 percent hike, receiving 16 million dollars for the past year.