March 15, 2006
North Fork Bancorporation Payout
We have another monster payout to senior executives in a firm that has been acquired, North Fork Bancorporation. The CEO netted an estimated $135 million on the acquisition of the bank by Capital One. John Kansas will get $66 million in restricted stock, $15 in severance payments, $6 million in stock options, $4 million in stock-unites and $44 million to cover personal tax payments ( a gross up). Kansas is defending the payment as justly earned (he is 59 and has been the CEO since 1988); apparently he worked past five on occasion. Until shareholders (and the board) cease to be surprised (stunned is a better word) by such payments after the fact, I will be skeptical of the argument.
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