Bank of New York CEO Kelly's Compensation Rose 38% to $19.4 Million in '10

Robert Kelly, chief executive officer of Bank of New York Mellon Corp. (BK), the world’s biggest custody bank, earned $19.4 million last year, a 38 percent increase from the year before.

Kelly, 56, received more in stock awards and incentive compensation than he did for 2009, according to a filing released today. His $1 million base salary remained the same.

New York-based BNY Mellon reported net income of $2.5 billion in 2010, compared with a loss in 2009, as stock and bond markets rebounded. Kelly has boosted profits by shifting employment to lower-cost locations and making acquisitions.

Curtis Arledge, hired in August to be head of the bank’s asset-management unit, received $11.8 million, including stock awards worth $8.7 million and a bonus of $3 million. Arledge previously worked at New York-based BlackRock Inc. (BLK), the world’s largest money manager.

BNY Mellon last year bought BHF Asset Servicing GmbH for 253 million euros ($352 million) to expand in Europe and acquired PNC Financial Service Group Inc.’s investment-servicing business for $2.31 billion. The bank’s revenue growth has been hurt by the U.S. Federal Reserve’s decision to keep its main lending rate near zero since 2008.

BNY Mellon gained 8 percent last year compared with a gain of 12 percent for the Standard & Poor’s 15-company index of asset managers and custody banks.

President Gerald Hassell earned $11.2 million, 75 percent more than he was paid in the previous year. Chief Financial Officer Thomas Gibbons got $6.8 million, a 67 percent increase.

Custody banks earn fees for keeping records, tracking performance and lending securities to institutional investors such as mutual funds, pensions and hedge funds.

To contact the reporter on this story: Charles Stein in Boston at

To contact the editor responsible for this story: Christian Baumgaertel in Boston at

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