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Block CEO Gets $12M in First Year

William Cobb, H&R BlockWilliam Cobb pulled down just under $12 million in compensation in his first year as CEO at H&R Block. Cobb earned that amount for the year ended April 30 in a company that has seen high turnover in its executive ranks over the last two years.

The biggest chunk compensation was the $4.5 million in stock awards and a nearly identical amount in option awards. Cobb, who joined the company in May 2011, also got a $951,200 base salary, a $900,000 bonus, $856,188 in non-equity executive compensation and $239,470 for all other sources, the majority of which was a $146,109 company payment for Cobb's use of Block's Net Jet aircraft share.

Each of the seven named executives in the Block proxy statement were either like Cobb new to the company, or no longer in the positions for which compensation was reported. Cobb is the third CEO in the last three years and the company has had as many CFOs in the same time as it looked for a formula to regain growth and market share.

The departees included C.E. Andrews, who had been president of the former RSM McGladrey operations. Andrews, who left in March, got $4.5 million in compensation for the year, including a $3 million bonus as a reward for his services. Philip Mazzini, former president of the retail services group, left at the end of the fiscal year with $1.4 million. Jeffrey Brown, who served as CFO, $1.4 million. Gregory J. Macfarlane was named CFO on June 4, 2012, but Brown stayed with the company as chief accounting and risk officer.

Susan P. Ehrlich received $1.2 million as SVP of financial services and Thomas Gerke almost $930,000 as general counsel. Ehrlich moined the company in November and Gerke in January.

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