Leaders of some of the largest banks in the country will be enjoying a huge payday soon, once the Federal Reserve approves higher dividend payments by selected financial institutions.

 

Jamie Dimon, chief executive of JPMorgan Chase, may soon make nearly $6 million annually in dividend payments alone, an amount almost equal to a third of his total pay last year. Capital One’s top executive, Richard Fairbank, could earn nearly $3 million a year from stock he holds in his bank.

 

Other institutions planning for dividend increases include BB&T, Bank of New York Mellon, U.S. Bancorp, PNC Financial and Wells Fargo. PNC Financial’s chief executive, James Rohr, stands to earn close to $1 million a year, while Wells Fargo CEO John Stumpf could make nearly $400,000 a year in dividends.

 

These executives are benefitting from the federal government’s decision following the 2008 financial crisis to encourage banks to reward their leaders less in salaries and bonuses, and more in stocks.

-Noel Brinkerhoff

 

Dividends Will Enrich Bank Chiefs (by Eric Dash, New York Times)