The Morning Economic Report
5:30 am
Tue May 6, 2014

Executive Pay Discrepancy - 5/6/14

According to a recent Fortune Magazine article, last year, the highest ranking female executives working at America’s largest banks were paid an average of $5.6 million.  

That is a lot of money and includes salary, bonuses and deferred stock options.  But that figure is just 78% of what male bank executives took home – an average of $7.2 million.  Even more striking is the gap in the number of female executives.  Among the nation’s 24 biggest banks, just 11 of 129 individuals listed as top paid employees were women.  Those 11 women made $62 million in the aggregate – not bad, but the larger male cohort received $842 million.  Some of the pay discrepancy relates to the fact that there are still very few women CEOs in finance. 

Only one of the large banks, KeyCorp, is led by a woman, Beth Mooney.  She made $7.5 million last year, less than the $11.8 million average pay of the other bank CEOs.  Though Keycorp is one of the smallest of the 24 largest banks, it stock price rose 59 percent last year, one of the industry’s best performances.  It also has slightly higher market capitalization than Ally, which paid its CEO Michael Carpenter nearly $10 million last year