Fifth Third Bancorp
) Chief Executive Officer (CEO), Kevin Kabat, received a 25% pay
hike in his total compensation package. His annual salary had
been increased to $8.9 million in 2012 from $7.1 million,
according to a Securities and Exchange Commission filing last
CEO's pay package includes salary of $1.0 million and stock
awards of $3.3 million for the year 2012. He has also received
$2.3 million in stock options, up by $0.5 million. Furthermore,
the CEO's non-equity incentive plan surged $1.3 million to $2.1
million in 2012.
In addition to this, Fifth Third's President, Greg Carmichael,
received a pay hike of 35% to $5 million in 2012. Moreover, Chief
Financial Officer (CFO) - Dan Poston's salary increased 41% to $3
The pay hike of executives at Fifth Third came on the back of
certain factors, including the company's financial performance in
2012. The company's net income climbed 21% to $1.6 billion in
2012. Moreover, Fifth Third generated a 22% total return for
shareholders in 2012.
Notably, during 2011, Fifth Third exited the federal government's
Troubled Asset Relief Program and returned to its
After Kabat's appointment as CEO in 2007, Fifth Third reported an
increase in total revenue to $6.6 billion as of Dec 2012 from
$5.5 billion in 2007. Moreover, for full year 2012, the company
recorded a 9.7% year-over-year rise in total revenue.
Going forward, with a diversified traditional banking platform,
Fifth Third remains well poised to benefit from a recovering
economy along with its footprints. Its traditional commercial
banking franchise, diverse revenue mix, improved credit quality
and enhanced capital position serve as positive catalysts for the
Furthermore, we believe that its capital deployment activities
will boost shareholders' confidence. However, a low interest rate
environment, regulatory issues as well as competitive pressures
are the headwinds.
Currently, Fifth Third holds a Zacks Rank #2 (Buy). Among peers,
) holds a Zacks Rank #1 (Strong Buy), while
State Street Corporation
) retain a Zacks Rank #2.
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