Reports: Schapiro to get big bucks from Finra

Jan 29, 2009 @ 10:27 am

By Dan Jamieson

Although Mary Schapiro is taking a pay cut as Securities and Exchange Commission chairman compared with what she was making as head of the Financial Industry Regulatory Authority Inc. of Washington and New York, she is nevertheless leaving with a nice chunk of cash.

In 2007, Ms. Schaprio earned $2.5 million in compensation and $615,000 from employee benefit plans and deferred pay, according to Finra spokesman Herb Perone.

Ms. Schapiro's 2008 compensation will be disclosed on Finra's next IRS form 990 filing, Mr. Perone said.

Although Mary Schapiro is taking a pay cut as Securities and Exchange Commission chairman compared with what she was making as head of the Financial Industry Regulatory Authority Inc. of Washington and New York, she is nevertheless leaving with a nice chunk of cash.

According to The Wall Street Journal, she will receive a cash-out of between $5 million and $25 million from Finra's defined benefit plans.

The Journal and other news reports cited numbers from Ms. Schapiro's Office of Government Ethics disclosure report.

She also earned at least $2.75 million last year, according to press reports.

It was unclear whether that amount was just Ms. Schapiro's cash pay or included deferred compensation and contributions to benefit plans.

She will earn just under $163,000 annually as SEC chairman.

In 2007, Ms. Schaprio earned $2.5 million in compensation and $615,000 from employee benefit plans and deferred pay, according to Finra spokesman Herb Perone.

Ms. Schapiro's 2008 compensation will be disclosed on Finra's next IRS form 990 filing, Mr. Perone said.

Benchmark alleges that Finra misled members on the terms of its merger with the New York Stock Exchange’s regulatory unit.

Although pay for Finra executives has been a sore spot for some member firms, Ms. Schapiro's pay may not have reached the level of former Robert Glauber, the former chief executive of NASD, which merged with NYSE's regulatory unit to form Finra in 2007.

In 2006, he was paid $4.9 million in compensation and another $1.4 million in contributions to benefit plans and deferred compensation, according to the NASD's 2006 IRS Form 990 filing.

According to Finra's 2007 annual report, the latest report available, Finra has two defined benefit plans, an employee retirement plan and a supplemental executive retirement plan.

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