* Handler's total includes $39 mln in grants for 2013-2015
* CEO's pay was $19 mln, excluding future grants
* Jefferies agreed to be bought by Leucadia National in 2012
* Handler due to take reins of the combined company
By Rick Rothacker
Jan 29 Jefferies Group Inc paid Chief
Executive Richard Handler $45.2 million in 2012, making him one
of Wall Street's most highly compensated executives, according
to a securities filing on Tuesday.
Handler's pay package included $1 million in salary, a $5
million bonus and $39 million in stock grants that would cover
2013 to 2015, according to the filing. The long-term grants vest
over time, based on the CEO's performance in those years.
The U.S. Securities and Exchange Commission tallies pay that
was expensed during the company's fiscal year to calculate total
compensation. Handler made $19 million in 2012 when counting a
$1 million salary, a $5 million bonus and a $13 million stock
granted under an earlier long-term incentive plan.
Jefferies, which is considerably smaller than the biggest
Wall Street firms, handed its CEO a sizable compensation package
at a time when some rivals are cutting pay and slashing their
staff to reduce expenses in the face of challenging market
JPMorgan Chase & Co halved Jamie Dimon's bonus after
the bank took losses on its "London Whale" trade, reducing his
pay to $11.5 million for 2012. Morgan Stanley paid CEO James
Gorman $6 million, down about 30 percent excluding long-term
Goldman Sachs Group Inc CEO Lloyd Blankfein bucked
the trend, receiving a more than 50 percent increase in
restricted shares as part of his bonus for 2012. [ID:
Jefferies has been trying to press its advantage as a
smaller, more lightly regulated bank by paying employees with
more cash. In Tuesday's filing, the mid-size investment bank
said it was granting restricted cash instead of restricted stock
to employees generally for 2012 in "recognition of the more
challenging times faced throughout our industry." Bigger banks
have faced shareholder and regulatory pressure to pay employees
with more deferred compensation, and paying more bonuses with
Jefferies' shares rose 35 percent in 2012 as the investment
bank agreed to sell itself to its largest shareholder, Leucadia
National Corp, and financial stocks in general
rebounded. Handler is set to take the reigns of the combined
company from Leucadia CEO Ian Cumming.
The investment bank had net earnings of $323 million in the
year ended November, up from $286 million in the same period in
2011. In comparison, JPMorgan, the largest U.S. bank, had
profits of $21.3 billion in 2012.
Handler made $1.2 million in 2011 when Jefferies' stock
dropped 48 percent amid questions about its European exposure,
according to a tally under SEC guidelines. In 2010, he received
$47.3 million, including grants for past and future years.
Handler volunteered to have his 2012 bonus reduced by $3.1
million from the $8.1 million he could have received, according
to Tuesday's filing. All of the bonus can be forfeited in the
first year for reasons such as leaving the company for a
competitor. He received no bonus in 2011.
In September, Jefferies executives said the investment bank
aimed to pay less of its revenue to employees over the next two
years but will not come down to the 50 percent ratio that many
industry peers target.