Most-Overpaid/Underpaid CEOs 

By Bloomberg Markets - 2013-05-30T11:59:07Z

Photograph by Jake Rowland/Gallery Stock

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How We Crunched the Numbers

For its July 2013 issue, Bloomberg Markets compared the awards and performance of each of the 20 CEOs of North American banks to determine who was the most overcompensated and undercompensated. First, we ranked the 20 banks on each of three measures as of the end of fiscal 2012: total stock return; return on common equity, which includes accounting charges; and assets. (We took assets into account because of the relative difficulty at large global firms of achieving positive results compared with doing so at smaller and more-focused regional companies.) Then we took the average of the three rankings for each firm. Finally, we subtracted each CEO’s total compensation rank from his or her firm’s average position, and the chief with the biggest difference between the two rankings was the most overpaid; the leader with the smallest difference was the most underpaid. All pay figures were rounded to the nearest 100,000. For the complete story, click here.