Capital One Financial Corp. (COF), the fifth-biggest U.S. credit-card lender, gave Chief Executive Officer Richard Fairbank a 2013 bonus that was 30 percent larger than the previous year.
Fairbank was awarded $2.84 million in restricted stock units and $2.84 million in deferred cash, compared with $2.19 million of each for 2012, the McLean, Virginia-based firm said today in a filing. Combined with stock and options awards outlined in filings last year, his total compensation for 2013 rose 7.5 percent to $18.8 million.
Fairbank, 63, is diversifying his personal wealth and receiving more of his pay in cash. Last year was the first in at least 15 years when his pay wasn’t all options or stock. Shares of Capital One have returned more than 1,600 percent, including dividends, since the company went public in 1994.
Fairbank’s bonus includes an award of 40,076 restricted stock units that will vest in three years and cash that will be deferred for the same period. In the event of misconduct or a failure to manage risks, Fairbank’s incentive pay is subject to being clawed back, according to the filing.
In addition to his bonus, Fairbank’s target compensation for 2013 included 155,363 shares tied to the firm’s three-year performance beginning last year and a grant of 325,985 stock options, according to a March filing. The stock and options award totaled $13.1 million, according to the exercise prices outlined in the filing.
Fairbank’s total target compensation package for 2014 is $17.5 million, according to today’s filing. That includes a grant of 123,309 shares tied to the firm’s three-year performance starting Jan. 1 and a grant of 108,944 stock options.
Capital One has gained 22 percent in the past year, outpacing the 17 percent advance of the Standard & Poor’s 500 Financials Index. The firm reported last month that profit rose 1.9 percent to $859 million in fourth-quarter from a year earlier and 18 percent to $4.1 billion for the full year.
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