Finra chief executive Richard Ketchum took home $2.89 million in total pay last year, up 10 percent from 2013, according to Finra’s annual report.
All told, seven Finra executive officers made more than $1 million in total pay last year, said the report, which was released Monday.
Finra’s chief legal officer, Robert Colby, and executive vice president for regulatory operations Susan Axelrod, enjoyed the biggest bumps in total pay last year, up 23 percent to $1.17 million and 8.2 percent to $1.1 million, respectively.
Finra uses a pay-for-performance model, according to the annual report, benchmarking executive pay to “a broad section of financial services and capital market companies” that are the most likely sectors from which to recruit or lose talent.
Total operating revenue at the self regulator grew 2.9 percent to $864 million.
The biggest revenue-gainer was regulatory fines, jumping 120 percent to $132.6 million, thanks to larger fines that averaged $206,000, up from $80,000 in 2013.
Fine revenue is not included in Finra’s operating revenue. “The use of fine monies is limited to capital expenditures and regulatory projects,” the report said.
Expenses declined 3.4 percent, due in part to a voluntary early retirement program begun in 2013, Finra said.
Overall, operating income improved to a positive $57.8 million, reversing a loss of $73.4 million in 2013.
With the help of strong fixed-income markets, Finra’s $1.7 billion investment portfolio returned 5.8 percent last year. The portfolio, which supplements Finra’s other revenue sources, had 47 percent in bonds and cash as of year-end 2014, 34 percent in equities, 11 percent in alternatives and 8 percent in real assets.