NEW YORK, March 28 (Reuters) - 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 our strategy.”
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 Sept. 30.
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 Commission.
Schwab directors recommended voting against the proposals. (Reporting by Jed Horowitz; Editing by Bernadette Baum)