Capital One’s Fairbank Enacts Plan to Sell Shares

Capital One Financial Corp. (COF) Chief Executive Officer Richard Fairbank adopted a plan to dispose of almost 1.5 million shares as he seeks to diversify his personal wealth.

The plan permits Fairbank to exercise 926,000 options, then sell the resulting shares as well as 550,000 others, according to a filing today from McLean, Virginia-based Capital One. The sales would represent less than 0.3 percent of the company’s approximately 580 million shares outstanding.

“The sales under the plan are intended to help diversify Mr. Fairbank’s personal investment holdings,” according to the filing. Sales would take place no earlier than November, and the plan expires two years later, Capital One said.

Fairbank, 62, has started shifting his wealth away from Capital One after the shares hit a 5-year closing high of $62.88 in January. Fairbank was paid $2.19 million in deferred cash as part of his 2012 compensation, the first time in at least 15 years he didn’t receive all options or stock.

The plan allows Fairbank to exercise 360,000 options granted in December 2003 with a strike price of $56.28, and 566,000 options received in December 2004 with an exercise price of $82.39, according to the filing. The options are set to expire in December of this year and next.

Capital One rose 1.3 percent today to $59.60 in New York. It has gained 2.9 percent this year, the worst performer in the 24-company KBW Bank Index, which has advanced 17 percent. The shares reached a record $90.04 on March 10, 2006.

To contact the reporter on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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