NEW YORK, March 28 Charles Schwab Corp
awarded both its namesake chairman and its chief executive, Walt
Bettinger, a pay increase of 23.7-percent last year, the
brokerage firm said in a regulatory filing on Friday.
The compensation reflected a year in which the executives'
long-term strategy - of expanding beyond simple inexpensive
stock commissions into a broader range of services - bore fruit,
the company's compensation committee wrote.
Bettinger, 53, who has been president and chief executive of
the San Francisco-based firm since 2008, was paid $12.73
million, including $4.4 million in cash and $8.3 million in
stock and option awards.
Charles Schwab, 76, who has licensed the use of his name to
the company as a corporate trademark, earned $5.48 million,
including $2.8 million of stock and option awards.
His daughter, Carolyn "Carrie" Schwab-Pomerantz, earned
about $458,000 last year in her role as president of the Charles
Schwab Foundation, and also received nearly 4,000 shares of
restricted company stock and more than 8,600 stock options.
The company's revenue last year grew 11 percent, its stock
price jumped 83 percent, including reinvested dividends, and
assets it manages for clients in its 9.1 million active
brokerage accounts rose 25 percent to $140.8 billion, on both
stock market gains and new sales.
" fter a long period of progress masked by environmental
headwinds," the firm's proxy statement said, referring to years
of low interest rates that deprived Schwab of making much money
on its clients' cash, "our financial performance in 2013 more
clearly reflected the significant growth we have achieved with
Schwab said its board's compensation committee compared
performance and executive pay against eight asset management
companies, including Ameriprise Financial Inc and T.
Rowe Price Group, five regional banks and more
traditional discount brokerage competitors such as TD Ameritrade
Holding Corp and E*Trade Financial Corp.
E*Trade earlier this week said in its 2013 proxy filing
that its chief executive, Paul Idzik, earned $13.5 million in
his first year on the job, including a signing bonus of $9
million. TD Ameritrade Chief Executive Fred Tomczyk was paid
$6.5 million in the firm's fiscal 2013 year, which ended on
Schwab will hold its annual meeting on May 15 as a "virtual"
online event, the proxy said.
In addition to voting on approving executive compensation
and election of directors, shareholders will consider proposals
by several New York City employee pension funds that would
require Schwab to issue reports on its policies for making
political contributions and to disclose a breakdown of its
workforce by race and gender, a report that is privately
submitted to the U.S. government's Equal Employment Opportunity
Schwab directors recommended voting against the proposals.
(Reporting by Jed Horowitz; Editing by Bernadette Baum)