What's in his wallet? Capital One discloses CEO Fairbank's compensation
Capital One Financial CEO Richard Fairbank hasn't received a salary from the banking and credit card giant since 1998. He'll continue keeping it that way in 2015.
Still, Fairbank received compensation valued at more than $19.6 million in 2014, up 7% from $18.3 million in 2013, according to Capital One's preliminary annual proxy statement, filed Friday.
Fairbank, 64, has been Capital One's CEO since July 1994.
His no-salary arrangement, approved by Capital One's board in late 1997, is unusual, but not unprecedented in the ever-escalating world of executive compensation. Capital One said the bulk of Fairbank's compensation is equity-based, tied to the company's stock performance and deferred for three years.
His pay package includes restricted shares worth $2.9 million, a deferred $4.4 million bonus, a $10.5 million stock award and stock options worth $1.75 million. Fairbank's compensation and year-end incentive award was based in part on operating income, earnings per share, revenue and performance over a three-year period ending December 2016.
Fairbank gained another $22.9 million from previously awarded stock that vested last year, Capital One said. That's down from about $23.2 million Fairbank gained from stock option exercises and vested shares in 2013
Capital One's total shareholder return rose 9.5% in its latest fiscal year, 102% over the past three years and 125% over the past five.
Earlier this week, the McLean, Va., based company said it's being investigated by the Justice and Treasury departments for possible money-laundering. Capital One's subprime auto finance operations are also being reviewed by Justice Dept. officials.
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