Credit Card CEOs Don’t Have to Worry About Personal Debt
Being the CEO of a credit card issuer or processor pays well. Very well.
MasterCard CEO Ajay Banga’s pay package last year totaled $11.3 million, an increase of 35 percent over his 2011 compensation of $8.3 million, according to the Associated Press. Most of this increase came in the form of stock awards, including stock options, valued at $7.5 million. These options were 52 percent higher than his 2011 package. His salary “only” increased 9 percent to $983,333. Banga also received a performance-based cash bonus of $2.5 million and perks totaling $348,000.
This increase came after a good year when the credit card company earned $2.8 billion, up 45 percent from a year earlier.
Capital One paid Chief Executive Officer Richard Fairbank approximately $17.5 million in compensation for 2012. The payment package included $10.9 million in stock, $4.38 million in options, and $2.19 million in a cash bonus. Securities regulators calculate pay differently and report that Fairbank earned $22.6 million: $16 million in stock awards, $4.4 million in option awards and $2.2 million in the form of a deferred cash bonus. The $22.6 million package would be a 21 percent increase over his 2011 package of $18.7 million.
Visa’s new Chief Executive Officer, Charles Scharf, will receive $950,000 per year in salary as well as $19 million in restricted stock and stock options. Joseph Saunders, the former CEO of Visa, received a $9.7 million pay package for the 2012 fiscal year when he retired in November 2012. He received $11.8 million in compensation for fiscal year 2011.