It turns out that going into banking during the last decade really paid off (literally), regardless of the effects that the financial crisis and the succeeding Great Recession had on the rest of the economy.
Average compensation for bank employees during the past few years actually went up, according to Federal Deposit Insurance Corporation data. In fact, the rate of increase was the same as it was before the 2008 Wall Street implosion, leading to a rate of 35% over an eight-year period and an average salary of $83,050.
Peter Capelli, director of Wharton Business School's Center for Human Resources, said it is "sort of strange that after the worst crisis in modern times, you see wages rising" in the banking industry.
Bank employees aren't the only ones making out fine these days. Michael J. Williams, the CEO and president of Fannie Mae, which had to be rescued by Washington because of its involvement in subprime mortgages, earned $9.3 million in total compensation over the course of 2009-2010. Fannie's CFO, David Hisey, made $4.6 million and its chief administrative officer and general counsel, Timothy Mayopoulos, $4.5 million.
Compensation was similar for those running Freddie Mac, which also had to be bailed out. CEO Ed Haldeman Jr. took home $7.8 million, general counsel Robert Bostrom $5.2 million and CFO Ross Kari $4 million.
-Noel Brinkerhoff
Through the Crisis, Average Bank Pay Grew at Pre-Downturn Clip (by Jeff Horwitz, American Banker)
Evaluation of Federal Housing Finance Agency's Oversight of Fannie Mae's and Freddie Mac's Executive Compensation Program (Federal Housing Finance Agency Inspector General) (pdf)
Fannie and Freddie to Get Unlimited Aid…and Huge Executive Bonuses (by Noel Brinkerhoff, AllGov)
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