Charles Schwab Corp (NYSE:SCHW)’s top notch officials and executives’ pay packages have fallen in 2014 over a range of 5-10 per cent, in comparison to the amounts in cash and stocks notched up in 2013.
Walter Bettinger, the CEO and President of SCHW garnered $11.8 million by virtue of cash, stock awards and options in 2014; this was 7 per cent lower than $12.7 million which he had received in 2013.
The San Francisco based firm has also cut the payments of five other top executives, which witnessed slashing payments on the range of 5.4 percent to 10.3 percent, averaging to $3.4 million.
Base Salaries Constant; Restricted Stock Grants Lowered
The base salary payable to Bettinger and other executives (but one) were constant, and cash bonuses increased. However, they received lower numbers of restricted stock grants in 2014, in comparison to the 2013.
Charles Schwab Corp (NYSE:SCHW)’s compensation policy depends on the EPS (earnings per share). Lately, in 2014, SCHW’s EPS increased by 22%. However, on the long term premise pertaining to options and stock awards, returns garnered by SCHW on equity can be comprehended; further, how much this is exceeding the net cost of equity can also be calculated.
Payment Details Of Top Executives
Bettinger received $1 million as salary, another $4.2 million as stock awards, options valued and cash bonuses at a cumulative value of $6.5 million, and another $117,179 notched from dividends and retirement contributions.
The chairman of this eponymous organization, Charles Schwab got $4.97 million during 2014, dropping by 9.4% from 2013. CFO Joseph Martinetto obtained $3.2 million after a 10.3% drop since 2013. He is giving up his title this year.
Bernard Clark, an independent financial advisor, obtained $2.62 million and James McCool received a net salary of $4.97 million, which dropped by 5.4%. Another executive, John Clendening lost his title as the cohead of SCHW’s retail brokerage operations. Down by 6.7%, he earned $2.95 million.