For the second year in a row, the two top executives at
won't receive cash bonuses.
The nation's largest discount brokerage, in a recent corporate filing, said Charles Schwab and David Pottruck, co-chief executive officers of the San Francisco-based firm, declined to take bonuses so the money could "be available for bonuses for other employees."
Of course, there are a lot fewer employees at Schwab to get bonuses now. The firm has slashed its workforce by more than 20% since the start of the bear market.
The decision by Schwab and Pottruck will sit well with Schwab investors, who've watched shares of the big online brokerage plummet. The stock, now trading around $7.60 a share, is down 73% since Jan. 1, 2001.
Schwab profits also have taken a beating as its estimated 6 million customers continue to sit on their hands and take a break from trading stocks. Two weeks ago, the firm announced it is slashing spending by another $40 million and warned Wall Street analysts to lower their earnings estimates for the first quarter.
Without the cash bonuses, Pottruck and Schwab each earned identical salaries of $883,334, an increase of $233,331 for both men over 2001. Both executives also canceled three years worth of stock options they have received from the firm.
Given the tough times on Wall Street the past few years, a smattering of other top executives also have chosen to forgo taking any cash bonuses. Most notable among them are
Chief Executive Sanford Weill and
Chief Executive Charles Gifford.
But a number of Wall Street honchos have been rewarded with bigger bonuses.
The two top executives at
, for instance, each received a $7 million cash bonus in 2002. David Komansky, the firm's chairman, and E. Stanley O'Neal, Merrill's president and chief executive, took home $6 million more in bonuses than they did in 2001, even though the firm's stock fell 26% last year and it was marred by as many ethical scandals as Citigroup.
J.P. Morgan Chase
said Friday it trimmed the cash bonus for its chief executive, William Harrison, to $3.1 million from $5 million in 2001. Harrison's $1 million base salary remained unchanged from the prior year.