Which bank CEOs received big raises, pay cuts in 2020

May 19, 2021 4:00 AM

Two factors played major roles in shaping compensation trends for bank CEOs in 2020. One was the COVID-19 pandemic, which led to big increases in loss reserves, in turn causing net income to fall at many banks. Some chief executives saw pay cuts as a result.

The other big factor was the ongoing wave of mergers and acquisitions, which increased the size of companies like First Horizon and First Citizens Bancshares. The CEOs of both those firms got substantial pay hikes last year.

The information below about select bank CEOs comes from data compiled by the consulting firm Compensation Advisory Partners as well a review of the companies' most recent proxy statements. Banks are listed by asset size in descending order.

Andrew Harrer/Bloomberg

Brian Moynihan, Bank of America

Total direct compensation in 2019: $26.5 million

Total direct compensation in 2020: $24.5 million

Change: -8%

Bank of America credited Moynihan in its annual proxy statement for what it characterized as his “extraordinary leadership response to the pandemic.” But it also noted that the Charlotte, North Carolina-based company’s net income fell as a result of lower interest rates and a higher provision for credit losses. BofA’s net income fell by nearly 35% in 2020 to $17.9 billion.

Michael Corbat, Citigroup

Total direct compensation in 2019: $24.0 million

Total direct compensation in 2020: $19.0 million

Change: -21%

Corbat, who retired earlier this year and was succeeded by Jane Fraser, got credit in Citi’s proxy statement for playing a critical role in leading the company through the aftermath of the 2008-2009 financial crisis. But Citi also said that its financial performance in 2020 fell short of its aspirations "both in absolute terms and relative to peers." Its proxy statement cited consent orders with the Federal Reserve Board and the Office of the Comptroller of the Currency as evidence of the need to "transform aspects" of its "risk and control environment and culture."

Charlie Scharf, Wells Fargo

Total direct compensation in 2019: $23.0 million

Total direct compensation in 2020: $20.3 million

Change: -12%

Wells Fargo said that its board considered Scharf’s increased focus on advancing diversity, equity and inclusion, as well as his "prioritization of progress on regulatory work," in evaluating the CEO’s performance. But the firm’s proxy statement also noted that Wells’s net income fell last year by 83% to $3.3 billion.

Kelly King, Truist Financial

Total direct compensation in 2019: $9.5 million

Total direct compensation in 2020: $13.2 million

Change: +39%

King was credited in Truist’s proxy statement for successfully overseeing "enormous task" of integrating BB&T and SunTrust Banks. The two banks merged in December 2019, about three months before the start of the pandemic. King, who had been BB&T's chairman and CEO, will step down as CEO of the Charlotte, North Carolina-based Truist and hand the reins to Bill Rogers, Truist's president and chief operating officer and the former CEO of SunTrust.

Bruce Van Saun, Citizens Financial Group

Total direct compensation in 2019: $10 million

Total direct compensation in 2020: $9.1 million

Change: -10%

Van Saun’s compensation fell last year in recognition of COVID-19 and decreased earnings despite what the Providence, Rhode Island, company characterized as its “strong relative performance” in comparison with peer firms. Citizens’ net income of $1.1 billion in 2020 was down 41% from the previous year.

Stephen Steinour, Huntington Bancshares

Total direct compensation in 2019: $7.0 million

Total direct compensation in 2020: $8.2 million

Change: +16%

Steinour requested a reduction in his base salary in an effort to reflect the economic uncertainties related to the pandemic, and a temporary 10% reduction in his base salary was approved in April, according to Huntington’s proxy statement. The CEO’s base salary was restored to $1.1 million this year. The compensation committee of Huntington’s board credited Steinour with delivering “strong financial performance" for the Columbus, Ohio, company "in a challenging environment.”

Bryan Jordan, First Horizon

Total direct compensation in 2019: $4.9 million

Total direct compensation in 2020: $8.8 million

Change: +80%

Bryan Jordan’s salary was increased twice in 2020. Before the Memphis, Tennessee, company’s merger with Iberiabank, a board committee determined that his salary was well below the median within a group of peer companies. Jordan’s compensation was reviewed again following the merger, and a second, smaller salary increase was approved.

Frank Holding, First Citizens Bancshares

Total direct compensation in 2019: $3.5 million

Total direct compensation in 2020: $5.6 million

Change: +62%

Holding got a significant pay increase during a year in which First Citizens, of Raleigh, North Carolina, announced its merger with CIT Group. First Citizens’ proxy statement cited the company’s substantially larger size, as well as the “significantly increased breadth and complexity of our business,” in explaining compensation decisions for Holding and other top executives.