April 26 Ronald Kruszewski, the chief executive
of brokerage firm Stifel Financial Corp, received $6.99
million in cash and stock awards in 2012, according to the St.
Louis-based company's annual proxy filing on Friday.
The 23 percent jump in pay from 2011 included $2.3 million
in cash and the rest in stock awards. Kruszewski, whose base
salary of $200,000 has not changed since he joined Stifel in
1997, owns $6.3 million of the company's shares and another $6.9
million of stock that has not yet vested.
Kruszewski, 54, was rewarded primarily for Stifel's
"improved performance" over 2011, the firm's compensation
committee wrote in the filing.
Stifel's net income in 2012 surged 65 percent to $138.6
million and revenue was up 14 percent.
The proxy did not mention that the company's share price was
flat for the year, after falling 23 percent in 2011. Shares have
grown at a compound annual rate of 7 percent over the past five
years, it noted, compared with a 15 percent drop in an index of
In a speech to retail brokerage executives on Thursday,
Kruszewski attacked a proposed rule from the Financial Industry
Regulatory Authority that will require U.S. brokers to disclose
to their clients full details of pay and recruiting bonuses they
receive when they move to a new firm.
The rule raises privacy and anti-competitive issues,
Kruszewski said, and can further damage sinking levels of trust
and confidence that investors have in brokerage firms.
More than 60 percent of Stifel's revenue last year came from
retail brokerage operations, but Kruszewski has been focusing on
building the firm's capital markets and investment banking
businesses through acquisitions. Stifel in February bought KBW
Inc, a money-losing New York-based investment bank specializing
in giving advice to small banks.
The climate for bank merger deals and capital-raising
remains tepid, Kruszewski said in a brief interview on Thursday,
but said Stifel is well-positioned to profit when the
Shares of Stifel, up 0.5 percent this year, were down 1.5
percent at $31.63 in afternoon trading on The New York Stock