Chief executives at several big banks received extraordinary paydays for 2009, with Wells Fargo (NYSE: WFC) CEO John Stumpf receiving compensation that doubled his 2008 earnings. Though incredible high payouts at banks are still the norm despite public outcry, a large majority of the payouts were based in stock, better liking the executives’ earnings to company performance.
Mr. Stumpf became one of the highest paying banking executives in 2009 with his $21.3 million payday. The compensation was paid in both cash and stocks. Stumpf received $5.6 million in cash, according to a filing with the Securities and Exchange Commission.
Stumpf’s remaining payout was in stock, which has clauses attached to it. If the executive were to leave the bank for a competitor the stock bonus would be lost. The shares have a three-year vesting period and certain performance goals must be met to active them.
Elsewhere, JP Morgan Chase (NYSE: JPM) CEO Jamie Dimon received $16 million bonus, but it was completely paid in stock.
Goldman Sachs (NYSE: GS) CEO Lloyd C. Blankfein is set to receive a $9 billion stock bonus for 2009, according to a regulatory filing a month ago. However, the bank has not made an official filing yet that the payout has occurred.
All three banks paid back funds received from the Troubled Asset Relief Fund last year.
