Cullen/Frost rewards top execs with hefty pay raises

Phillip Green’s promotion to chairman and CEO of Cullen/Frost Bankers Inc. came with a generous $1 million pay raise last year, a 36 percent boost to $3.7 million.

Green, who took over the helm when Richard “Dick” Evans retired April 1, received $2.7 million in total compensation as president in 2015. Evans retired after a 45-year career at the parent company of Frost Bank.

Green wasn’t the only executive who received a healthy boost last year, the company said in its annual proxy statement released Friday.

CFO Jerry Salinas’ compensation rose about 40 percent to almost $1.4 million last year. His salary increased to $500,000 from $400,000 in 2015, while his bonus jumped to $375,000 from $100,000.

Cullen/Frost President Paul Bracher, who was promoted April 1, was awarded an almost 26 percent increase last year to almost $1.4 million. His salary increased to $530,000 last year from $500,000 in 2015 when he was just the chief banking officer of Frost Bank. His bonus was $396,500 last year, up from $187,500. Bracher currently serves in both roles.

Frost Bank President Pat Frost received $1.3 million in compensation last year, an increase from $1.1 million in 2015. He received a $520,000 salary, up $20,000 last year. His bonus rose to $390,000, up from $187,500.

Green’s salary was $950,000 last year, up from $565,000 in 2015. He received an $855,000 bonus last year, compared with $226,000 in 2015.

Cullen/Frost also awarded Green stock valued at almost $1.7 million when the shares were awarded Oct. 25, up from about $902,000 in 2015.

Cullen/Frost had a solid 2016, earning $296.2 million, or $4.70 a share — a 9 percent increase over 2015 when the company earned $271.3 million, or $4.28 a share. Analysts had expected the company to earn $4.64 a share last year.

Evans, who retired with at least $73.1 million in company stock and pension benefits, received more than $1.1 million in total compensation last year. That included $300,000 in salary and a $300,000 bonus.

Cullen/Frost also disclosed some transactions it has entered into with cloud-computing company Rackspace Hositng Inc. co-founder Graham Weston, who has been nominated to serve on the board of the bank holding company.

Frost Bank is the lead lender on a $141 million loan made to a Weston-led company for the construction of the bank’s new 23-story headquarters at 111 W. Houston St. It will be the first office tower constructed in downtown San Antonio since the Weston Centre in 1989. Frost Bank’s portion of the loan is $76 million.

Frost Bank will pay the Weston-led company $8.4 million in annual rent for a portion of the building under the terms of a lease agreement, starting in 2019. Weston has a 21 percent indirect interest in the company that owns the Frost Tower.

Cullen/Frost will hold its annual meeting on April 27. Besides the election of directors, shareholders will get to vote on two nonbinding proposals on executive compensation.

Cullen/Frost is the largest regional bank based in San Antonio. It had $30.2 billion in assets as of Dec. 31.

The stock was trading at about $91 a share in early trading today, down about 70 cents.

pdanner@express-news.net