Discover’s CEO Paid $22 Million Last Year

Discover Financial Services (NYSE: DFS) paid its CEO $21.8 million in its 2007 fiscal year, the company reported Tuesday in a filing with the U.S. Securities and Exchange Commission.

David Nelms received a base salary in 2007 of $900,000 and $2.75 million in bonuses. He also received $18.14 million in stock awards and options, and other compensation of $6,100, Discover's contributions to Nelm’s 401(k) plan, according to an analysis from the Associated Press.

Morgan Stanley spun off Discover in fiscal 2007, leading to the stock awards for Nelms who has led the card network and issuer since 2004. Discover has more than 50 million card holders and operates the Pulse ATM and debit network. Discover shares have dropped 44 percent since it bagentrading last July. Shares closed Tuesday at $16.19.

Discover reported fiscal 2007 net income of $561 million, down from $1.08 billion in 2006, due to write offs from its Goldfish card business in the United Kingdom. This month, Discover announced it would sell the Goldfish unit to Barclays Bank for about $70 million and leave the UK (“Discover Sells U.K. Goldfish Card Unit,” Feb 7). Morgan Stanley bought Goldfish for about $1.7 billion in 2005.