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April 27, 2008
Questions About National City's Outside Directors and Executives
There is a very telling note to the recent $7 billion infusion of money into National City Bank by a hedge fund club. The leader of the hedge fund group, Corsair Capital Vice Charmian Richard Thornburgh, is joining the board of directors and will be the only outside director with banking experience. Whatttt??? By the way, the CEO of National City, Peter Raskind, who presided over the lose of $15 billion because the bank invested in high risk securities and used mortgage brokers that participated in questionable mortgage brokerage practices made $3.4 million last year. The fellow at the bank, Jeffry D. Kelly, who designed the mortgage loan practices made $4 million last year. The bank has cleaned house in the lower mortgage divisions but the top folks, and those who monitor the top folks, have survived and continue to prosper.
April 27, 2008 in Mergers & Acquisitions | Permalink
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Comments
$3.4 million for Raskind? Are you sure that's it? I remember when Daberko, the former Chairman/CEO raked in about $14 million/year, including stock, and it was seen as a relative bargain for shareholders at the time (even making Forbes' list for best CEO's by value, using a measure of performance compared to compensation). Granted, NCC was trading in the mid-to-high-30's at the time, but Raskind pulled in more than $3.4 million in his old position as the head of retail.
Right now, Gordon Gekko would throw a fit over National City. He thought 20 Vice Presidents at Teldar Paper was a big deal? National City has hundreds of VP's, and I'm pretty sure most of them are making six figures. "You either do things right, or you get eliminated," indeed.
Posted by: Vince | Apr 28, 2008 10:13:50 PM
