The total compensation of Northern Trust Corp. chief executive Frederick Waddell rose 12 percent to $14.3 million in 2011.
Some of the increase was due to stock and option awards granted last year for 2010 performance.
In its proxy, Northern said that, in response to shareholder feedback, it had narrowed the list of firms in its compensation peer group to big trust and custody banks, as well as certain other U.S. banks. Companies use such peer group to set compensation. It also said that all new executive employment agreements won't include what are called excise tax gross ups, a practice where companies cover certain executive tax payments.
In response to regulatory concerns about all larger banks, Northern said that, to further discourage inappropriate risk taking, stock options have decreased from 50 percent of the total value of each executive officer's long-term incentive compensation in 2011 to one-third in 2012
The proxy still had a couple of shareholder proposals, however. One recommends that Northern split its role of chairman and CEO, two positions held currently by Waddell. Northern recommended a vote against it. Among other things, Northern said it has an independent lead director
Waddell's salary rose to $956,250 from $900,000. The pension value for the longtime Northern veteran increased to nearly $4.1 million from $3.3 million. "Other" compensation, including perks, increased from $75,527 to $88,672.
Stock awards rose from $3.5 million to $4 million, and option awards from nearly $3 million to almost $3.6 million.
His bonus fell from $2 million to $1.6 million.