Wachovia execs could end up with millions

Raleigh News & ObserverOctober 2, 2008 

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

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