TD Ameritrade's New CEO Received $13.5M in 2008

TD Ameritrade Holding Corp.'s new President and CEO Fred Tomczyk received compensation the company valued at $13.5 million in fiscal year 2008, just before taking over the top job at the online brokerage.

By comparison, outgoing Chief Executive Joe Moglia received compensation worth $21.7 million as he moved into the board chairman role at the Omaha-based company.

Ameritrade detailed how much it pays its top executives in a proxy statement filed with the Securities and Exchange Commission on Tuesday. The only items Ameritrade shareholders will vote on at the company's annual meeting on Feb. 18 will be the routine election of five board members and the appointment of Ernst and Young to audit Ameritrade's books.

The company said it rewarded its top executives in 2008 with 185 percent of their target annual bonuses because Ameritrade delivered earnings per share of $1.33. That exceeded the goal of $1.16 per share the compensation committee had set.

Ameritrade earned net income of $803.9 million on revenue of $2.54 billion in 2008. The annual profit figures jumped about 24 percent from 2007, when Ameritrade generated $645.9 million net income, or $1.06 per share, on $2.18 billion in revenue.

Ameritrade has been working to grow its asset-based revenue to supplement its more-volatile fee-based revenue that fluctuates with stock market activity. The company has avoided many of the problems other financial services companies have faced recently, and Ameritrade doesn't have any U.S. real estate credit risk on its balance sheet.

Most of the value of Tomczyk's compensation is related to grants of stock and stock options he received during 2008, and most of those stock grants were awarded as part of his promotion to CEO.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards at the time they are granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.