The president and chief executive of People's United Financial Inc. received a compensation package of $3.6 million in 2013, a 20 percent increase from 2012, according to a shareholder filing Friday.
In addition, Jack Barnes, who has led the parent of People's United Bank since 2010, also received stock options and shares of restricted stock currently worth $1.3 million. The ultimate value of the award will depend on the value of People's United shares when the options are exercised and the shares of restricted stock vest.
The increase in Barnes' 2013 compensation package was driven largely by the value realized from previously granted stock, which jumped 35 percent to $1.1 million from $836,000 in 2012. Barnes' cash incentive payment, which combines short- and long-term executive incentive programs tied to performance goals, also was a major contributor, rising 34 percent, to $1.3 million.
Barnes' salary rose 3 percent, to $970,000. All other compensation, which included use of a company-owned plane and contributions to retirement plans, fell 12 percent, to $211,000.
Barnes did not exercise any stock options.
The proxy, filed with federal securities regulators, stated that Barnes, 58, and other top executives of the bank successfully navigated the uncertain economy, achieving an increase in earnings per share, plus strong loan and deposit growth. In addition, operating expenses were kept in check and less money had to be set aside to cover troubled loans.
"Despite the tough economic environment and continued historically low interest rates, we performed well during 2013," the proxy stated.
The compensation package came in a year in which People's United shares rose 21 percent, to $15.12. The stock is trading well below the offering price of $20 a share in the bank's 2007 "second step" conversion.
A $100 investment in the conversion was worth $74.49 at the end of 2013, assuming all dividends were reinvested.
In mid-day trading Friday, the shares were valued at $14.65, up 4 cents.
The Courant calculates compensation as the sum of salary, bonus, value exercised from stock options and vested stock awards, plus other forms of direct pay, such as incentive payments and personal use of corporate aircraft.
These are 2013 compensation packages for other top executive officers:
Robert R. D'Amore, retail banking chief, $1.3 million, plus $536,000 in options and restricted shares. D'Amore is retiring as of March 31.
Lee C. Powlus, chief administrative officer, $1.2 million, plus $465,000 in options and restricted shares.
Jeffrey J. Tengel, commercial banking chief, $1.3 million, plus $536,000 in options and restricted shares.
Kirk W. Walters, chief financial officer, $2.1 million, plus $757,000 in options and restricted shares.