Capital One Financial Corp. awarded its CEO, Richard Fairbank, a compensation package worth nearly $14.9 million in 2010, more than double what he received in 2009, according to an Associated Press analysis of a regulatory filing Wednesday.
Nearly all of Fairbank's compensation was from restricted stock and options awards given to him in January 2010, with the amount based on the bank's performance in the prior year. He received no salary or bonus, because the company aims to align the CEO's interests with the interests of the company's stockholders.
Fairbank, 60, has served as chief executive since 1994 and as chairman since 1995. He received shares and stock options valued at $14.8 million at the time they awarded, up from $6 million in the prior year, according to the company filing with the Securities and Exchange Commission.
Fairbank, 60, also received perks and benefits that were valued at $100,637, up 31 percent from the year prior.
Of the perks and benefits, Fairbank received a health screening worth $2,341. Capital One paid for personal security and a driver that was valued at $48,886 and covered life insurance premiums worth $22,050. He also received $27,360 in dividends on unvested restricted stock.
The increase in compensation came as Capital One profit skyrocketed in 2010. The McLean, Va.-based bank best known for its large credit card business reported net income of $2.74 billion in 2010, compared with $320 million in 2009.
The earnings reflected growth in both its consumer and commercial banking businesses, and improvement in customers repaying loans and credit card balances.
The AP's executive pay calculation aims to isolate the value the company's board placed on the CEO's total compensation package. The figure includes salary, bonus, incentives, perks and the estimated value of stock options and awards.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC, which reflect the size of the accounting charge taken for the executives' compensation in the previous fiscal year.