Though it is hard to nail down exactly what they are paid, it is clear that employees of the 12 Federal Reserve Banks are well compensated relative to other financial regulators.
The salaries of the 20 highest-paid employees at each of the 12 banks have increased an average of 19% since 2002. That excludes bonuses, which the Fed banks refused to disclose. New York Fed spokesman Peter Bakstansky did say bonuses generally amount to less than 10% of total pay.
Though eight federal agencies with jurisdiction over financial companies responded to Freedom of Information Act requests for data on the 50 highest-paid employees, the 12 Reserve banks claimed they are not subject to the disclosure law.
The 12 Reserve banks disclosed only salary ranges for top-paid executives and suggested that the midrange be used for all calculations. However, some of the ranges exceeded $100,000. For instance, the Federal Reserve Bank of Richmond pays its medical director between $143,000 and $297,800.
Comparisons with data the Fed banks provided American Banker in 2002 show that some pay scales increased substantially. [The Fed banks provided only titles and a salary range for each position; the names of employees were not released.]
The midpoint of the salary range for a senior vice president at the Richmond Fed increased 57%, to $257,900. The midrange for the three executive vice presidents at the San Francisco Fed soared 50%, to $289,150, and that of the first vice president at the Dallas Fed 48%, to $257,900.
Mr. Bakstansky, who answered questions on behalf of all 12 Reserve banks, said such big increases merely brought some salaries in line with the pay at other Reserve banks.
The use of ranges makes drawing comparisons or conclusions difficult. For instance, at four of the Reserve banks, a first vice president or a senior vice president could be paid more than the bank's president. Take the Richmond Fed, where the midrange salary for the director of information technology (as well as the first vice president) are $257,600 - more than the $252,300 paid to its president, Jeffrey Lacker.
However, when asked about such aberrations, Mr. Bakstansky said, "There is no Federal Reserve officer who earns more than that bank's president."
Salary information was provided for the 12 presidents because those figures are published in the banks' annual reports. The average pay among the presidents is $264,475, up 7.2% in two years.
The New York Fed president, Timothy Geithner, is paid the most, $310,000. Sandra Pinalto in Cleveland makes the least, $231,500. Janet Yellen at the San Francisco Fed, who was appointed in June, makes $300,000.
The longest-serving president is Gary Stern in Minneapolis, who has been on the job since 1985. He makes $264,500.
