Capital One Financial Corp. (COF), the bank that gets more than half its revenue from credit cards, gave Chief Executive Officer Richard Fairbank a portion of his compensation in cash for the first time since at least 1997.
The lender awarded Fairbank $2.19 million as a deferred cash bonus, part of his $17.5 million compensation package for 2012, the McLean, Virginia-based company said yesterday in a filing. It was the first time in at least 15 years that he received cash as part of his salary or bonus, Julie Rakes, a Capital One spokeswoman, said in an e-mail.
“The committee and the independent directors recognized that including a deferred cash bonus for Mr. Fairbank would bring his overall compensation program more in line with peer practice for chief executive officers,” the lender said in the filing.
The bonus must be deferred for three years and held in a company plan that’s non-qualified and voluntary, according to the filing. It will pay out in February 2016 and is subject to clawback provisions.
Fairbank, 62, spent more than $28 billion on acquisitions since 2005, including the purchase last year of HSBC Holdings Plc’s U.S. card business. The acquisitions helped Capital One become the eighth-largest U.S. lender by assets.
The CEO’s 2012 compensation also included $10.9 million in stock and $4.38 million in options, the company said. Under guidelines from securities regulators, which calculate pay differently, Fairbank earned $22.6 million.