The disparity between what Wall Street CEOs make and what their employees bring home is getting slimmer, according to a new report in the Wall Street Journal.
The average pay for employees at the top five Wall Street banks hit record highs last year, but executive compensation remained below where it was before the 2008-09 financial crisis. In 2006, CEOs earned an average of 273 times what a worker at a bank made. Last year, it was 124 times more.
From the Journal:
The top bank executives are still well paid. Last year, the heads of J.P. Morgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, Bank of America Corp., and Citigroup Inc. Were awarded $92.5 million collectively, or $18.5 million on average.
But that figure represents a 47% decline from the $173.6 million the five CEOs of those banks took home in 2006. The average paycheck for workers at those firms, which encompasses everyone from tellers to investment bankers to the CEOs themselves, increased 17%, to $148,740, the highest in the nine years of data tracked, from $127,379 in 2006.
The narrowing of the pay gap is evidence that banking executives are facing more of the regulatory repercussions from the crisis than their workers—at least, those that survived post-crisis layoffs.
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