How Good Were the Paydays for Bank Chiefs … and Shareholders?: DealBook Briefing
- 6 years ago
How Good Were the Paydays for Bank Chiefs … and Shareholders?: DealBook Briefing
The good times that returned to Wall Street after President Donald Trump got elected are now flowing into the pockets of the big banks’ C. E.Os:
• Citigroup’s Mike Corbat saw his compensation jump 48 percent last year, to $23 million.
Investors should keep an eye on the amount of performance share units (P. S.U.s)
that are included in a comp package, since these are usually the type of stock award that are most at risk of a decline in value if a bank underperforms by certain yardsticks.
Citigroup’s stock rose 25 percent in 2017, a lot more than the 16 percent posted by the KBW Bank Index.
• Bank of America’s Brian Moynihan, we also already know, enjoyed a 15 percent bump, to $23 million.
That amount, which represents an already high 6.6 percent of the total deal price, still isn’t high enough for Qualcomm.
In other Qualcomm news: Elliott Advisors, which owns about 7.2 percent of NXP Semiconductors, renewed its argument
that Qualcomm should pay more than $110 a share for the smaller chip maker, especially in light of NXP’s recent quarterly earnings.
• Mr. Dimon does best by this measure, since P. S.U.s made up 78 percent of his comp.
But on other yardsticks, the awards can seem high
Citi may be doing better than in the past, but its return on equity, a metric
that shows a bank’s return on its capital, was only 6.6 percent last year.
The good times that returned to Wall Street after President Donald Trump got elected are now flowing into the pockets of the big banks’ C. E.Os:
• Citigroup’s Mike Corbat saw his compensation jump 48 percent last year, to $23 million.
Investors should keep an eye on the amount of performance share units (P. S.U.s)
that are included in a comp package, since these are usually the type of stock award that are most at risk of a decline in value if a bank underperforms by certain yardsticks.
Citigroup’s stock rose 25 percent in 2017, a lot more than the 16 percent posted by the KBW Bank Index.
• Bank of America’s Brian Moynihan, we also already know, enjoyed a 15 percent bump, to $23 million.
That amount, which represents an already high 6.6 percent of the total deal price, still isn’t high enough for Qualcomm.
In other Qualcomm news: Elliott Advisors, which owns about 7.2 percent of NXP Semiconductors, renewed its argument
that Qualcomm should pay more than $110 a share for the smaller chip maker, especially in light of NXP’s recent quarterly earnings.
• Mr. Dimon does best by this measure, since P. S.U.s made up 78 percent of his comp.
But on other yardsticks, the awards can seem high
Citi may be doing better than in the past, but its return on equity, a metric
that shows a bank’s return on its capital, was only 6.6 percent last year.