NEW YORK—CEO pay across the banking sector climbed sharply in 2024, with nearly every chief executive in a new Compensation Advisory Partners analysis receiving higher total compensation than the year before, as boards rewarded stronger earnings, rebounding bonuses and improved shareholder returns following the regional banking turmoil of 2023.
Compensation Advisory Partners examined pay at 54 large and regional banks and found all but four CEOs received increases in total direct compensation in 2024. Among regional banks with between $10 billion and $50 billion in assets, average CEO pay jumped 24.1%, nearly double the increase seen at larger institutions, according to CAP data cited by American Banker.
CAP said the rebound was driven largely by incentive compensation. In its regional banking analysis, the firm reported median CEO compensation rose 15% in 2024 after declining in 2023, while annual incentive payouts increased sharply as bank profitability and shareholder performance improved. The consultancy noted many banks restored bonuses after a difficult prior year marked by liquidity stress, deposit pressure and heightened scrutiny on the regional banking sector.
The broader banking industry also saw executive compensation move materially higher at the nation’s largest firms. The JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo CEOs collectively earned $258 million in 2025 compensation, a 21% increase from the prior year, according to reporting by The Wall Street Journal.
CAP’s research found compensation growth continued to lean heavily on performance-based and equity incentives rather than salaries alone. The firm reported median total direct compensation for CEOs across industries rose 4% in 2024, with long-term incentive awards continuing to drive most increases as boards sought to retain executives amid ongoing competition for leadership talent and continued economic uncertainty.