(Crain's) — Discover Financial Services CEO David Nelms' total 2010 compensation more than tripled to $10.9 million, as the Riverwoods-based credit card company recovered from the recession to post a 487% increase in profit.
While other top executives at Discover also enjoyed big pay increases, the board has decided for 2011 to reduce cash outlays and expand stock rewards.
Salaries for all but Mr. Nelms were cut; his salary remained $1 million. Performance stock awards are being expanded, but Discover can rescind them for executives who don't comply with its risk control policies or who depart prior to their vesting.
For 2010, Mr. Nelms received a $1-million salary and a cash bonus of $1.7 million. Another $3.55 million of his salary was paid in stock, and he received an equity bonus worth $4.65 million.
In 2009, his total compensation was $3.27 million, and in 2008 it was $5.75 million.
Discover filed its proxy statement Friday with the Securities and Exchange Commission.
Notable 2010 achievements cited by the board in justifying the big pay hikes included Discover's $765 million in net income, a substantial increase over the $130 million the company booked in 2009, excluding proceeds of a major settlement with the Visa credit card network.
The board also applauded Mr. Nelms for steering Discover through the worst of the financial crisis, repaying federal bailout funds and expanding Discover's offerings through a significant acquisition of a student loans business.
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