TD Ameritrade gives CEO 9.1 pct pay raise to $6.5 million

NEW YORK Thu Jan 3, 2013 6:34pm EST

NEW YORK Jan 3 (Reuters) - TD Ameritrade Holding Corp awarded Chief Executive Fredric Tomczyk $6.52 million in the company's fiscal-year 2012, a 9.1 percent increase over his compensation the previous year, according to a regulatory filing.

Net income at TD Ameritrade, the biggest discount broker by client trading volume, fell 8.9 percent in its fiscal year ending Sept. 30, to $586 million.

The disclosure was made in the company's proxy filing late Thursday with the Securities and Exchange Commission.

The compensation committee of the Omaha, Nebraska-based company said it based awards to its executives on reaching goals related to trading market share, net new client assets and earnings per share "in the face of extremely difficult operating conditions" in 2012.

TD Ameritrade, whose largest shareholder, Toronto-Dominion Bank, owns about 45 percent of its common stock, increased net new assets from clients at an annualized rate of 11 percent to $41 billion in fiscal 2012 from the previous year.

Its earnings per share fell to $1.06 for the fiscal year from $1.11 in the year-earlier period.

The company, which last month declared a special dividend of 50 cents a share, said in October that despite sluggish trading volume industry-wide, it expects fiscal 2013 earnings generally to beat analysts' expectations.

The brokerage has expanded into options trading and fee-based accounts to supplement its market-sensitive commission business, and last year it reorganized its executive team.

Thomas Bradley, who heads its retail brokerage system and previously ran its business servicing independent investment advisers, received $2.37 million in total compensation, down 3.0 percent from his 2011 pay.

Thomas Nally, who assumed Bradley's former position, earned $1.3 million in fiscal 2012. His 2011 compensation was not disclosed because he was not part of the senior executive team that year.

Tomczyk received $700,000 in base salary, $4.1 million of stock awards and incentive plan compensation of $1.6 million. Since Sept. 30, he was also awarded 240,000 restricted stock units valued at $3.8 million that will be reported as part of his 2013 compensation, according to the proxy.

Tomczyk since August also has been a member of the board of Knight Capital Group as a result of TD Ameritrade's participation in the bailout of the trading firm, which executes trades for many discount brokerages. Knight last month agreed to be acquired by high-speed trading firm GETCO Holding Company.

Shares of TD Ameritrade, whose market capitalization of $9.46 billion trails the $19.2 billion market cap of competitor Charles Schwab Corp, rose 12 cents on Thursday to $17.47.

FILED UNDER: