Everyone expects the Fed to give top banks the thumbs up on higher dividends soon. Many banks and analysts have all but assured shareholders that higher payouts are coming.

Recall banks were forced to slash payouts, in some cases to near zero, as the financial crisis tool its toll. Normally, a dividend hike would not be cause for executive pay consternation, but the New York Times notes that the hikes will mean big payments for top executives, who have accumulated lots of shares.

Indeed, many boards, at the behest of regulators, have been using stock to greater degree as a compensation tool; the thinking is that it better aligns them with shareholders. For example, Jamie Dimon, CEO of JPMorgan Chase, "stands to eventually reap nearly $6 million a year in dividend payments from the stock he owns, an amount that equals almost a third of his total pay in 2010. Capital One's chief executive, Richard D. Fairbank, could earn nearly $3 million a year as the credit card giant weighs a similar move."

Wells Fargo, Citigroup, U.S. Bancorp, Bank of New York Mellon are also likely to hike dividends. Bank of America would like to raise dividends as well.

Corporate governance activists are not likely to make this an issue. They applauded the move to more stock-based compensation after all. But it is worth noting that this is a significant amount that will not be separately disclosed in proxies. Some banks may choose to discuss such payouts in their commentary on executive pay, however.

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