BB&T cuts top executive pay
03/06/2014 6:55 PM
03/06/2014 6:57 PM
A decline in earnings and a message from regulators led BB&T’s top executives to earn less pay for last year’s performance, the Winston-Salem bank disclosed in a securities filing.
CEO Kelly King’s compensation for the job he did in 2013 fell 8 percent from the year before, to $7.8 million, the bank said. Other top executives had smaller declines in pay.
The pay decrease came as BB&T’s earnings per share and return on average assets fell. The bank uses both metrics in determining incentive pay.
Regulators also told BB&T they wanted the bank to cut the maximum bonus payout it offers top executives, the bank disclosed. BB&T cut the maximum bonus award to 150 percent of the executive’s base salary, from 200 percent.
Net income for shareholders at the bank fell 18 percent, to $1.5 billion in 2013. The results were marred by a $516 million tax charge it took after losing a legal battle with the Internal Revenue Service. Return on assets fell to 0.95 percent, from 1.14 percent.
BB&T spokeswoman Cynthia Williams said the bank met performance targets in both 2013 and the year before but exceeded them by a greater margin in 2012.
BB&T’s share price rose about 30 percent last year, a hair behind the KBW Bank Index, which tracks bank stocks.
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