A report by The Wall Street Journal says bank chief executives saw smaller paydays during 2011. The CEO of Morgan Stanley, James Gorman, may have taken the biggest hit with a 50% drop in his stock-based income, to only a little more than $5 million. When you include salary and other bonuses, Gorman will collect $10.5 million, $3.5 million less than the previous year.
For James Dimon, the chief executive of J.P. Morgan Chase & Co., at least his stock bonus held steady at $17 million. His cash bonus dropped by half a million dollars to $4.5 million; but his base salary increased, coincidentally, by the same amount bringing it to $1.5 million.
Bank of America is also feeling the pressure. As a reflection of economic conditions they are limiting cash bonuses, according to the Journal report. Instead they are substituting bonuses in stock. So they announced last month they are issuing a billion dollars in stock in order to cover executive bonuses.