(Refiled to add CEO's first name in second paragraph, adds
NEW YORK, March 25 E*Trade Financial Corp
, the smallest of the publicly traded online discount
brokers, gave its chief executive officer $13.5 million in
compensation in his first year on the job, based on his
performance "during an important transition period" and
comparisons with pay for comparable industry executives.
In its annual proxy filing with the U.S. Securities and
Exchange Commission on Tuesday, the New York-based bank and
brokerage firm said Paul Idzik, a former Barclays Bank retail
banking executive who joined in January 2013, received $4.42
million in cash and $9 million of stock that vests over four
The company's compensation committee said the stock was a
signing bonus and E*Trade does not intend to give him additional
equity over the next two years under his employment agreement.
Idzik is the seventh chief executive at E*Trade since late
2007 as the company struggled to emerge from billions of dollars
of bad loans from its attempt to balance volatile brokerage
earnings with what its former management believed was stable
Since Idzik's arrival, he has replaced most senior
executives, sold $2 billion of loans, raised the company's
capital levels, revamped its marketing campaign and focused the
company on its core brokerage operations.
E*Trade also received permission from regulators in late
2013 to begin transferring capital from its bank subsidiary,
which it is keeping to hold clients cash, to fund its brokerage
Navtej Nandra, a former colleague of Idzik's when both were
consultants at Booz Allen, received $2.13 million in cash for
the nine months he served last year as president after leaving
his position at Morgan Stanley's investment management
unit. Nandra, who is putting a big emphasis on delivering
E*Trade services digitally, also received restricted stock in
February valued at $2.1 million on its grant date.
Chief Financial Officer Matthew Audette, the only senior
executive remaining from the management team prior to Idzik's
arrival, received a 3.8 percent raise in total compensation from
2012 to $2.2 million.
Excluding Idzik's $9 million stock-based signing bonus, his
$4.4 million pay in 2013 compares with $6.5 million in total
compensation received by TD Ameritrade Holding Corp CEO Fred
Tomczyk for the company's fiscal year that ended Sept. 30, 2013.
Charles Schwab Corp., the largest competitor to
E*Trade by capitalization, paid its CEO Walt Bettinger $10.2
million in 2012 but has not yet reported his 2013 compensation.
Shares of E*Trade were down slightly on Tuesday morning at
$23.87 per share.
(Reporting by Jed Horowitz; Editing by Chris Reese)