The Charles Schwab Corporation
) Chief Executive Officer (CEO) Walt Bettinger received a 1.3%
pay hike for 2012. With this, Bettinger's compensation has been
revised to $10.2 million, according to a Securities and Exchange
Commission filing last week.
The CEO's pay package includes a base salary of $983,333. In
addition, he received stock awards worth $2.6 million, option
awards of $3.9 million and a bonus of $2.7 million, as per the
Securities and Exchange Commission's annual proxy filing.
Further, in January, Mr. Bettinger was awarded $10.5 million as a
long-term compensation. Provided the company manages to achieve
its targeted performance related to earnings and return on
equity, Mr. Bettinger's compensation award might be elevated to
Bettinger, who completed 4 successful years as a CEO in Schwab,
has received a flat total annual pay of about $10 million during
Moreover, last week, in the Securities and Exchange Commission
filing, the company also made an announcement regarding decline
in compensation of the company's chairman Charles Schwab. His
compensation declined by 1.8% to $4.4 million in 2012. He
received a salary of $500,000 and stock awards of $1.2 million.
Further, he also earned $1.8 million in stock options along with
a bonus of $912,500.
The pay hike of Schwab's CEO comes in light of the exceptional
results the company came up with in 2012. Schwab's profit marked
a 7% increase to $928 million in 2012. Further, its revenue rose
4% to $4.9 billion in 2012.
However, these positives were offset by the impact of low
interest rate environment. Further in the past few years, Schwab
has been facing weaker trading volumes.
Moreover, Schwab has been continuously increasing fee waivers due
to the persistent low interest rate scenario in order to maintain
client's yield at positive levels. This has resulted in a decline
in Schwab's assets management and revenues from administration.
Further, the slow economic recovery is apprehended to hamper
Schwab currently carries a Zacks Rank #2 (Buy). In the same
industry, other firms that look attractive include
E*TRADE Financial Corporation
Raymond James Financial, Inc
Interactive Brokers Group, Inc
). All these stocks carry a Zacks Rank #2 (Buy).
E TRADE FINL CP (ETFC): Free Stock Analysis
INTERACTIVE BRK (IBKR): Free Stock Analysis
RAYMOND JAS FIN (RJF): Free Stock Analysis
SCHWAB(CHAS) (SCHW): Free Stock Analysis
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