Tuesday, April 7, 2015

Pay Gap Between Wall Street CEOs and Employees Narrows

If this story had not appeared in the Wall Street Journal, I would have a hard time believing it.


Updated April 5, 2015 7:00 p.m. ET

The pay slips of Wall Street’s rank and file are getting a little heavier. Less so for the big bosses.

The gap between what bank CEOs and their staffs take home in pay has narrowed significantly since the financial crisis, driven mostly by a drop in compensation for the leaders of the five biggest Wall Street firms, according to a Wall Street Journal review of bank regulatory filings.

The average pay for a worker at the five companies jumped to new highs in 2014, but pay remained well below precrisis levels for chief executives. The CEOs last year on average made 124 times the average worker at the banks, down 55% from 273 times in 2006.

The differential between CEOs’ and workers’ pay may get more attention once the U.S. Securities and Exchange Commission finalizes a rule mandating all public companies to report how much more the CEO made than a typical employee. The banking industry has opposed such disclosures.

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