• Posted on Thursday, October 2, 2008
  • Bookmark and Share
  • email
  • |
  • print
  • |
  • rss

tool name

close
tool goes here

Wachovia execs could end up with millions

Sign up for email newsletters now!

Sign up for email newsletters now!

 Never miss a McClatchy story
Follow us on Twitter
Follow us on Facebook
Add us to your Droid or iPhone
By Stella M. Hopkins | Raleigh News & Observer

His time at Wachovia is likely to cost CEO Bob Steel, who sank $16 million of his personal fortune into the bank's stock, which has since shed about 78 percent of its value.

But a trio of top executives could see fat checks if they leave following the Citigroup deal, which hasn't been finalized. However, they also would be stung by the stock's dismal plunge. Here are potential cash severance payments and the value of benefits such as health insurance:

Ben Jenkins, president of the general bank, with the company since 1971: $17.6 million, including $13.3 million in severance and a $3.7 million bonus.

Steve Cummings, head of corporate and investment banking, with the company since 1998: $20.3 million, including $14.3 million in severance and a $4.25 million bonus.

David Carroll, head of capital management, with the company since 1981: $19.1 million, including $14.1 million in severance and a $4 million bonus.

These payments also include up to $45,000 of financial planning services, $15,000 for “executive physicals” and $10,000 for “career transition and outplacement support services” for each man, according to a March securities filing. The report details several severance scenarios, including the executives choosing to leave for “good reason” following a “change in control.”

The Citigroup transaction is unusual because a scaled down Wachovia will continue. Many details remain unclear, and no management changes have been announced.

Read the complete story at newsobserver.com

JOIN THE DISCUSSION

We welcome comments. To post one, you must sign in using either your McClatchyDC login or your login for Facebook, Twitter or Disqus. Just click the appropriate box below.

Please keep your comment civil, short and to the point. Obscene, profane, abusive and off topic comments will be deleted. Repeat offenders will be blocked. If you find a comment abusive or inappropriate, please flag it for the moderator by placing your cursor on the comment, then clicking the "flag" link that appears. Thanks for your participation.

ECONOMY IN TURMOIL

economy in turmoil

Read McClatchy coverage of the economic pain Americans around the country are feeling, from Florida to California to Alaska.

ECONOMY QUESTIONS & ANSWERS

hall & pugh

McClatchy correspondents Kevin G. Hall (left) and Tony Pugh are available to answer your questions about the economic meltdown at home and abroad, and what's in store for ordinary Americans.

Q&A: THE HOUSING CRISIS

Mark Zandi, the chief economist for Moody's Economy.com, is took questions from McClatchy readers about the nation's deep housing crisis. His book, "Financial Shock," offers a 360-degree look at what caused the crisis, what mistakes were made and who made them. It offers a way forward to prevent future crises.

Q&A: TERMINAL CHAOS

U.S. air travel these days is about as fun as a trip to the dentist. Departure delays are rampant, bags often miss the flight you've caught and rising jet fuel prices have major airlines charging to check a bag. In his new book "Terminal Chaos," George Donohue, a professor and former high-level Federal Aviation Administration official, explains why our system of air travel is broken and what can be done to fix it. Read the responses.

Q&A: THE THREE TRILLION DOLLAR WAR

For two weeks, Nobel Prize-winning economist Joseph Stiglitz and Harvard professor Linda Bilmes, authors of "The Three Trillion Dollar War," fielded questions about the cost of the Iraq war and its impact on the U.S. economy. They're not taking new questions, but they're still posting answers to ones they've already received. Read their responses.