Walter Bettinger, president and chief executive of Charles Schwab Corp, earned $11.8 million in cash, options and restricted stock awards in 2014, 7 percent below the $12.7 million he was paid in 2013.
Five other senior executives of the San Francisco-based brokerage firm also had pay cuts between 5.4 percent and 10.3 percent to an average of $3.4 million.
Base salaries for Bettinger and all but one executive remained constant and cash bonuses increased, but each received fewer restricted stock grants than in 2013, according to Schwab's annual proxy document filed with the Securities and Exchange Commission on Friday.
Schwab's compensation committee ties cash bonuses to earnings per share, which rose 22 percent in 2014. But long-term stock awards and options reflect how much Schwab's return on equity equals or exceeds its cost of equity. The proxy did not go into detail but said the formula "reflects the creation of financial value for stockholders in all phases of the business cycle and measures the earnings power of the company."
Bettinger received a salary of $1 million, $4.2 million of cash bonuses, and stock and option awards valued at their grant date at a cumulative $6.5 million. He took home another $117,179 consisting primarily of dividends and matching contributions from a retirement plan.
His $11.84 million total, which could change based on the value of Schwab's stock when the options are exercised and his restricted stock vests, outpaced those of top executives at competing firms that offer discount services to retail investors.
TD Ameritrade Holding Corp CEO Frederic Tomczyk was paid $7.5 million in the company's fiscal year ending at the end of September 2014. E*Trade Financial Corp Chief Executive Paul Idzik received $5.3 million.
Charles Schwab, chairman of his eponymous firm, took home $4.97 million in 2014, down 9.4 percent from 2013. Chief Financial Officer Joseph Martinetto, who is giving up the title this year, was awarded $3.2 million, down 10.3 percent from 2013.
Bernard Clark, who leads Schwab's fast-growing business for independent financial advisers, was paid $2.62 million. His previous year's compensation was not disclosed because he was not previously among the company's most senior executives.
James McCool, who oversees products for clients, earned $4.97 million, down 5.4 percent from 2013. John Clendening, who lost his position as cohead of Schwab's retail brokerage operations in late December, earned $2.95 million, down 6.7 percent.