On Feb 3,
Capital One Financial Corp.
) Chief Executive Officer (CEO) Mr. Richard Fairbank received
approval for compensation worth $5.7 million for 2013, as per the
latest SEC filing by the bank. This reflects a 30% increase over
2012 and comprises deferred cash bonus of $2.8 million and 40,076
restricted stock units (RSUs) valued at $2.8 million.
The cash award has been deferred for a period of 3 years and will
be paid in the first calendar quarter of 2017. Also, RSUs will
translate into cash after being vested for a period of 3 years
depending on the company's performance during the said period.
The aforementioned compensation is subject to clawback provisions
of 2013 Proxy Statement.
For 2014, the company approved compensation worth $17.5
million for Fairbank. This includes the receipt of 0-150% of
123,309 shares of common stock subject to the performance of the
company for a period of 3 years commencing Jan 1, 2014. A grant
of 108,944 non-statutory stock options has also been approved.
Fairbank's pay hike seems justified owing to the pivotal role he
played in Capital One since its inception in 1988. Notably, the
recent acquisitions - ING Direct, the online banking unit of
ING Groep NV
), HSBC card business, part of
HSBC Holdings plc
), and Beech Street Capital have significantly expanded the
company's scale of operations.
Further, the latest earnings release of Capital One depicts
Fairbank's efforts in driving the company's performance favorably
amid the ongoing macro-economic headwinds across the industry.
For full-year 2013, earnings per share were $6.96, up 13.0% year
over year. Notably, Capital One shares gained 30.0% in 2013.
Capital One currently carries a Zacks Rank #3 (Hold). A better
ranked consumer loan institute is
Discover Financial Services
) with a Zacks Rank #2 (Buy).
CAPITAL ONE FIN (COF): Free Stock Analysis
DISCOVER FIN SV (DFS): Free Stock Analysis
HSBC HOLDINGS (HSBC): Free Stock Analysis
ING GROEP-ADR (ING): Free Stock Analysis
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