BOSTON, March 9 (Reuters) - Bank of New York Mellon Corp said on Friday that it cut by 21 percent the targeted pay opportunity for the top job at the world’s largest custody bank.
BNY Mellon said Chief Executive Gerald Hassell’s targeted pay opportunity for 2012 is $13 million. That’s lower than the $16.5 million opportunity available for the CEO position in the previous two years, the bank disclosed in a proxy filing with the U.S. Securities and Exchange Commission.
Hassell replaced Robert Kelly as CEO in August, giving the board’s compensation committee an opportunity to re-evaluate appropriate targeted compensation levels, the proxy said. The compensation committee also introduced more risk-based measures into the executive pay program, following discussions BNY Mellon had with the Federal Reserve Board.
Hassell’s targeted pay opportunity includes a $1 million base salary, cash bonus target of $4.5 million and equity-related compensation of $7.5 million.
Hassell’s actual pay for 2012 will depend on his performance and the company‘s, including stock price.
Last year, Hassell’s total compensation was $12.35 million. That figure includes a $2.2 million change in the value of his company pension and deferred compensation earnings.
Curtis Arledge, hired in 2010 as vice chairman and CEO of investment management, had total compensation of $18.05 million in 2011, the proxy said. But that figure includes one-time stock-based awards for joining BNY Mellon.
Before signing on in November 2010, Arledge was chief investment officer for fundamental fixed income portfolios at BlackRock Inc.
In 2011, BNY Mellon’s assets under management increased 8 percent year-over-year to $1.26 trillion and assets under custody and administration increased 3 percent year-over-year to $25.8 trillion.