Discover Financial Doubles 2010 Compensation for CEO Nelms as Stock Climbs

Discover Financial Services Chief Executive Officer David Nelms’s 2010 compensation almost doubled from a year earlier, matching the gain posted by shares of the credit-card network last year.

Nelms, 50, was awarded $8.55 million in salary and stock after receiving $4.38 million in 2009, according to a regulatory filing today. His 2010 salary increased to $4.55 million from $1 million, and he received a $1.7 million cash bonus after not receiving any the previous year. The 2010 package included $2.27 million in stock awards, down from $3.33 million.

Discover posted a 1 percent decline in profit for 2010. The Riverwoods, Illinois-based company was the last of the top six U.S. credit-card issuers to repay federal bailout funds to the Troubled Asset Relief Program, which came with curbs on executive pay. Discover repaid $1.22 billion in TARP money on April 21.

The stock fell 47 cents, or 2.1 percent, to $21.52 in 10:45 a.m. New York Stock Exchange composite trading. The shares rose 26 percent during 2010, double the gain for the Standard & Poor’s 500 Stock Index.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Rick Green at rgreen18@bloomberg.net -0- Feb/18/ :02 GMT

Photographer: Tim Boyle/Bloomberg

David Nelms, chairman and chief executive officer of Discover Financial Services. Close

David Nelms, chairman and chief executive officer of Discover Financial Services.

Close
Open
Photographer: Tim Boyle/Bloomberg

David Nelms, chairman and chief executive officer of Discover Financial Services.

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.