Off The Wire
Factbox: Big bank CEOs face the heat over pay disparity at Capitol Hill
(Reuters) - Chief executive officers of some of America’s largest banks, including JPMorgan Chase & Co, Bank of America Corp and Citigroup Inc, on Wednesday testified before Congress, where they were grilled on a wide range topics.
The discussions ranged from banks’ ability to safeguard the financial system, their role in financing gun-makers, to diversity and compensation.
Citigroup CEO Michael Corbat faced tough questions from Representative Nydia Velazquez, a New York Democrat, on the discrepancy between his pay and the average worker’s salary.
“Citi has the dubious distinction of having the largest discrepancy between CEO compensation and median employee salary of any other institution present today - a remarkable 486:1 ratio,” Velázquez said.
When asked how Corbat would feel if he were an employee in a company where his boss earned $486 for every $1 he made, the 57-year old CEO said, “I would be hopeful that there is opportunity to continue to advance within the firm,” much to Velázquez’s chagrin who ended the conversation saying, “Just unbelievable! This is why people who live in a bubble or ivory towers cannot understand why there’s so much anger out there.”
Reporting By Aparajita Saxena and Suhail Hassan Bhat in Bengaluru; Editing by Sweta Singh