M&T Bank Corporation’s MTB chairman and CEO, Rene Jones, received a total compensation of nearly $4.8 million for 2018, up nearly 57% year over year. Notably, he became the CEO in December 2017.
Per the company’s proxy statement, the increase in his compensation was largely driven by 139% surge in equity-based incentives to $2.5 million from $1 million in 2017. Further, cash incentive plan compensation increased to $1.3 million from $1.1 million. Additionally, the base salary increased 21% for 2018 to $0.9 million.
Also, Jones’ pay package includes $0.1 million as other compensation that is made up of retirement savings, term-life insurance premiums, country club memberships, tax preparation, parking and meals.
He has been appraised of displaying strong leadership. Further, he has been successful in achieving return on total assets and return on total common equity in the top quartile compared to his peers.
Moreover, Jones’ focus on improving customer’s experience through investment in technology, including enhanced mobile and digital capabilities seems impressive and bodes well for the company.
Compensation of Other CEOs
Citigroup’s C CEO — Michael Corbat — has received about 4.35% pay hike in his total compensation. His annual salary has been increased to $24 million in 2018 from $23 million in 2017.
Greg D. Carmichael, CEO at Fifth Third Bancorp FITB received a whopping 29% hike in his total compensation package for 2018. His total annual pay increased to $11.2 million in 2018 from $8.7 million, according to the company’s proxy statement.
Further, U.S. Bancorp’s USB president and CEO Andrew Cecere received a hike in his total compensation package for 2018 compared with the prior year. His total annual pay increased to $13.4 million in 2018 from $12 million in 2017.
M&T Bank is benefitting from an improving operating environment along with inorganic growth strategies, such as expansion of mortgage servicing business that will help boost its top line. Also, the bank enjoys diverse fee income sources and operates as a solid and sustainable regional bank franchise.
We believe Jones’ pay hike will prove to be a major morale booster. M&T Bank’s prospects remain promising with a diverse business model and a strong balance sheet.
This Zacks Rank #2 (Buy) stock has rallied 16% year to date. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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