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PNC, Comerica CEOs Land with Fatter Pays on Higher Pension - Analyst Blog

Among major regional banks, the Chief Executive Officer (CEO) of two banks received a boost in their 2014 compensation attributed to a rise in pensions. Comerica Incorporated 's CMA CEO Ralph W. Babb's total compensation was increased 75% year over year to $11.3 million in 2014. Moreover, The PNC Financial Services Group, Inc. 's PNC CEO William S. Demchak got a 42% raise in pay, which came in at $11.3 million in 2014.

The total compensation of Babb for 2014 includes a salary of $1.3 million, stock awards worth $3.2 million, option awards of $0.4 million, other compensation of about $0.1 million and pension of $4.8 million, according to a regulatory filing. Notably, Babb did not receive any pension in 2013.

On the other side, Demchak's 2014 compensation includes a salary of $1.09 million, stock awards worth $6.0 million, other compensation of about $0.6 million and pension of $0.65 million, according to a regulatory filing. Notably, Demchak's pension income increased substantially from about $50,000 in 2013.

Among some banking giants, Bank of America Corporation's BAC Chairman as well as CEO, Brian Moynihan is expected to receive $13 million as total compensation for 2014, which reflects a decline of over 7% from the pay awarded to him in 2013. This move did not come as a surprise, given the company's struggling profitability throughout the year.

Moreover, Citigroup Inc. (C) CEO Michael Corbat received about 10% pay cut in his total compensation package. His annual salary has been cut to $13.1 million in 2014 from $14.5 million. However, JPMorgan Chase &Co.'s (JPM) Chief Executive Jamie Dimon and Wells Fargo & Company's WFC CEO John Stumpf earned $20 million and $19.3 million, respectively, in 2014, unchanged from 2013.

Currently, both PNC Financial and Comerica carry a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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