FINSwire Apr 26 2011

Evercore CEO Takes Big Pay Cut

By brett philbin

Evercore Partners Inc. chief executive Ralph Schlosstein received compensation in 2010 valued at $2.2 million, an 87% decline from the $16.7 million he was awarded for 2009, according to the investment bank's proxy filed with the Securities and Exchange Commission.

The calculation of Schlossstein's pay, according to SEC rules, included stock awards of $1.3 million, a base salary of $500,000 and a bonus of $450,000.

Evercore, like many other big banks, also included an alternative to the SEC's rules of presentation, which looks at pay and stock awards issued in 2010. Under that alternative formula, which measures compensation for 2010, Schlosstein received a total annual bonus of $3 million, including $2.6 million in restricted stock units.

In the filing, the company said the $3 million award was "in recognition of the overall financial performance of the company and [Schlosstein's] contributions to Evercore in 2010, including the significant improvements in the Investment Management segment, the acquisitions of Atalanta Sosnoff and the private-equity fund-raising group, the investment in G5 and the successful launch of the research, sales and trading business."

Under Evercore's pay calculation, Schlosstein had received a total bonus of $8.6 million for 2009, which included a $6.1 million sign-on bonus, a "contractually guaranteed annual bonus pro-rated for partial year of service of $1.3 million" and a discretionary annual bonus of $1.2 million. The company said it believes his total bonus for 2010 was 65% less than his total bonus for 2009.

By either calculation, Schlosstein's pay was less than that of Evercore Founder and Co-Chairman Roger Altman, who received $6.5 million in compensation under the SEC's methodology and $3.9 million under the company's calculation. Evercore said Altman's bonus for 2010 was "63% less than his annual bonus for 2009."

Brett Philbin is a reporter for Dow Jones. Write to him here.

This story originally appeared on WSJ.com.




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