[IMGCAP(1)]

Heartland Payment Systems Inc. this year gave significant raises to two executives. Robert H.B. Baldwin Jr., president and chief financial officer, saw his salary increase 22.9%, to $430,000 from $350,000. Charles H.N. Kallenbach, the processor's general counsel, chief legal officer and secretary, will make $325,000 this year, a 30% bump from his 2008 salary of $250,000. In a May 11 U.S. Securities and Exchange Commission filing, Princeton, N.J.-based Heartland said it approved the salary increases "in light of the challenges facing the company from the previously disclosed processing-system intrusion and macroeconomic conditions." The pay raises became effective Jan. 1. In January, Heartland disclosed that hackers breached its network and intercepted an unknown number of payment transactions (CardLine, 1/20). Heartland says it also made available to Robert O. Carr, its chairman and CEO, up to 465,000 company shares for $8.88 each. Earlier this year, an unnamed securities firm that provided a loan to Carr and his wife Jill forced the couple to sell 4.3 million shares they owned in the processor (CardLine, 3/17). Heartland also offered Baldwin and Kallenbach shares in the company. Earlier this month, the merchant processor reported a $2.5 million first-quarter loss (CardLine, 5/7). Heartland's stock was trading at $7.87 earlier today. On May 15, 2008, the company's stock price closed at $26.70 per share.


Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry