PNC Offers Execs Large Stock Packages Instead of Cash

Another bank that received bailout money has decided to offer its top executives large stock packages in an attempt to satisfy federal regulators concerned about excessive executive compensation.

In a filing with the Securities and Exchange Commission, PNC Financial Services Group Inc. said it would give raises "entirely in the form of stock units" to its chief executive, president and three other leading employees.

The decision came as seven of the largest financial institutions to received bailout funding under the Troubled Asset Relief Program on Friday submitted proposed executive-compensation packages to Kenneth R. Feinberg, the Treasury Department's "pay czar."

Last week, American International Group Inc. said Feinberg had approved a stock-heavy compensation package for its top executive. Robert H. Benmosche, the company announced, will receive an annual salary of $7 million, consisting of $3 million in cash and $4 million in AIG stock.

PNC, which received $7.6 billion in bailout funding, is not subject to Feinberg's direct oversight. Rather, the company's decision to pay out raises in stock was a response to a Treasury rule prohibiting "the payment or accrual of bonuses (including equity-based incentive compensation) to the five 'senior executive officers'" by companies getting public aid.

The raises bring Chief Executive Officer Jim Rohr's salary up to $3.5 million, with $1 million of that in base salary and the balance instock.  Among other top executives, Senior Vice Chairman William Demchak's pay will increase to $3.3 million from $600,000, and President Joseph Gayaux will see a bump from $620,000 to $1.5 million.