Despite Wachovia losses, exiting execs could walk off with millions

[Newsjock]

Source: San Francisco Chronicle

The top brass of Wachovia Corp., which lost billions betting on risky mortgages and neared the brink of bankruptcy last week, could walk away with tens of millions of dollars if Wells Fargo & Co. completes its acquisition of the Charlotte, N.C. bank.

In contrast, Wells Fargo of San Francisco doesn't provide executive officers with severance arrangements any different from mangers throughout the company, according to its latest proxy statement. Nor is there any direct incentive for completing a merger or acquisition in itself, although certain executives could earn more if the bank's profits or shareholder returns improve because of the deal, said Frank Glassner, chief executive officer of Compensation Design Group, an executive pay consulting firm in San Francisco.

... If Wachovia's general bank President Ben Jenkins leaves the company after Wells acquires it, he could potentially receive a $13.3 million severance and $3.7 million pro rated bonus, according to the Charlotte, N.C., financial company's 2008 proxy. Steve Cummings, head of corporate and investment banking, may get a total of $18.6 million and David Carroll, head of the capital management group, could see $18.1 million.

... "I don't know that the captain of the Titanic got a bonus for driving the boat into an iceberg," Glassner said. "They at least had the decency to go down with the ship."

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/09/BU0E13EBUT.DTL&type=business

[Mind_your_head]

1. They don't deserve ~ haven't earned NOT ONE PENNY

Karma may prove to be a *bitch* some day to them - hopefully sooner, rather than later.

[question everything]

2. I think that we need to sue all of them: executives of AIG, and WAMU

and Lehman Brothers and get their millions back and put them back into the organizations. The better they are, the less they will need our intervention (one hopes).

I don't know at what ground but can't we find something? Perhaps that those bonuses and golden parachutes should have not been provided once the financial situation was clear?

[Mind_your_head]

3. How's about we just punch them all in the face!

At least we'd feel satisfied and get a REAL reaction/outcome!

[aquart]

5. Only if we pick their pockets while they're on the ground.

Like they did to us.

[Mind_your_head]

7. Sounds fair to me...let's

;-)

The opportune time is a-coming' fast

I don't know about you, but I'm tired of being the 95 lb. weakling nerd who lets everyone kick sand in my face!

[BeFree]

4. Well

What do you think they had to get the 700B for? So they could pay off all their friends.

Damn the people who pushed and shoved to get the bailout done so quickly. If you see them around hit them hard and make them end their foolish support of bush and his minions.

[Zhade]

6. At some point, people will start shooting CEOs over things like this.

I AM NOT CONDONING THAT ACTION.

But it will happen.

[cabluedem]

8. You are probably correct. Lots of people losing everything own guns and live in a cuture that .....

promotes and glorifies violence.

[truthisfreedom]

9. Obama's got this.

8^)