In a Feb. 25 story about compensation received by Fifth Third Bancorp's chairman in 2007, The Associated Press erroneously reported the value of his stock and option awards. Chairman George Schaefer Jr. received $3.5 million in stocks and options, not $5.9 million.
A corrected version of the story appears below:
NEW YORK (AP) _ The president and chief executive of Fifth Third Bancorp, a Cincinnati-based bank, received compensation worth about $10 million in 2007, according to a proxy filing on Monday.
Kevin T. Kabat, 51, who became chief executive in April, received a base salary of $866,534 and a performance-based bonus of $3 million, according to a filing with the Securities and Exchange Commission.
He also received other compensation worth $140,400, including $28,682 for country club dues, $10,000 for trust and estate planning fees, $65,372 in contributions to his defined-contribution plans, and $5,000 in tax reimbursements.
The bulk of his award came in the form of stock and option awards the company valued at about $6 million.
Kabat was named president in June 2006 and was executive vice president before that.
Chairman George Schaefer Jr., 62, who ceded the chief executive title in April and remains chairman, received $5.8 million in 2007, versus about $4 million the year before.
In 2007 he received a base salary of $990,018 and a performance-based bonus of $1.1 million.
He received other compensation of $265,619, including $100,000 in trust and estate planning fees, $16,368 for country club and other dues, and $61,501 in contributions to his defined-contribution plan.
He also received stock and option awards the company valued at $3.5 million.
The AP's total pay calculations include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.
In January, Fifth Third reported fourth-quarter earnings fell 42 percent from the same quarter a year before, mainly due to a charge for future litigation and for costs associated with acquiring a Florida-based bank.
"The credit environment remains challenging. We expect credit conditions and the performance of our loan portfolio to continue to deteriorate in the near term," Kabat told analysts in a conference call at the time.
Fifth Third Bancorp is a financial services company that operates 18 affiliates with 1,227 banking centers and 2,211 Jeanie ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania and Missouri.
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