By Brett Philbin
Leucadia National Corp. (LUK), the conglomerate that bought
investment bank Jefferies Group LLC, granted its former chairman,
Ian Cumming, an $18.5 million bonus for 2012, a payout that beat
the total compensation awards issued to some of the top executives
at big Wall Street banks.
In its proxy statement filed with the U.S. Securities and
Exchange Commission Tuesday, Leucadia said the payout took into
account factors including "the performance of the company's largest
investments" and the terms "governing Mr. Cumming's retirement from
the company."
Mr. Cumming's bonus was more than the total pay granted to other
big bank heads for last year, including J.P. Morgan Chase & Co.
(JPM) Chairman and Chief Executive James Dimon and Morgan Stanley
(MS) Chairman and CEO James Gorman.
In another calculation of Mr. Cumming's pay by regulatory
standards, he took home about $29.1 million in total compensation
in 2012, down slightly from $29.3 million in 2011. By that formula,
which reflects compensation awards granted in prior years, Mr.
Cumming received a $27.5 million bonus, a $783,222 base salary and
$744,788 in noncash compensation for items such as "personal use of
corporate aircraft."
Mr. Cumming ran Leucadia alongside Joseph Steinberg, the
company's current chairman, since the late 1970s. The conglomerate,
which boasts holdings that range from Jefferies to a beef
processor, is often dubbed "Baby Berkshire" for an investment
philosophy similar to Warren Buffett's Berkshire Hathaway Inc.
(BRKA, BRKB).
The Leucadia deal, which closed on March 1, made Jefferies
Chairman and Chief Executive Richard Handler the CEO of Leucadia.
In April, the company said Mr Cumming won't stand for re-election
to the board.
Shares of Leucadia closed up 0.2% at $24.98. The stock, which
rose about 5% in 2012, has risen 8% year-to-date.
Write to Brett Philbin at brett.philbin@dowjones.com
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