McColl got $2.7 million as NationsBank chief

March 17, 1994|By Bloomberg Business News

CHARLOTTE, N.C. -- NationsBank Corp. Chairman and Chief Executive Hugh L. McColl Jr.'s 1993 total cash compensation rose 0.73 percent from a year earlier, according to a proxy statement filed yesterday with the Securities and Exchange Commission.

Mr. McColl's cash compensation package rose to $2.78 million, from $2.76 million a year earlier.

Mr. McColl's cash compensation was in the same ballpark as the pay of chairmen of other major banking companies, excluding stock compensation packages, which varied widely from bank to bank, SEC filings show.

NationsBank, the nation's third-largest banking company and Maryland's largest banker, said it based Mr. McColl's salary on the company's 1993 return on equity of 17.33 percent, which exceeded targets.

In addition, the compensation committee "took into account the growth in net income of the corporation, earnings per share and other financial criteria," the proxy said.

Net income rose 26 percent in 1993, to $1.5 billion, or $5.73 a share. At the same time, NationsBank's share price fell 4 percent, to $49, from $51.125 at the end of 1993.

Mr. McColl earned less than Citicorp Chairman John Reed, who was paid $4.15 million in cash, and Mellon Bank Corp. Chairman Frank Cahouet, who received $3.67 million cash.

The pay of both chairmen was affected by substantial bonuses based on the performance of their companies. Proxy statements show Mr. Reed was awarded a $3 million bonus, and Mr. Cahouet received a long-term incentive bonus of $2.09 million.

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