With the stock market tanked, a recession on the horizon and US government deficits heading toward 10% of GDP, it is important to note that the ordinary middle class citizen isn't the only one feeling pain. After reading this, you may possibly feel a bit better. For example:
James E. "Jimmy" Cayne, former CEO and Chairman of Bear Stearns. His stock in that company was once worth over $1 Billion, but after the company's forced sale to JPMorgan Chase in March 2008, he sold his entire stake in Bear Stearns for "only" $61 million. However, it has been reported that in February, 2008, Mr. Cayne closed on two 14th-floor condominium units overlooking Central Park in New York's Plaza Hotel for $27.4 million.
Former Washington Mutual CEO and Chairman Kerry K. Killinger "exited" WaMu in September 2008, he was given a golden parachute worth $22.3 million which included about 75% in cash, or $16.5 million with the balance in special restricted stock valued at about $5.7 million. Due to the banking crisis, his stock has plummeted and his total package is now worth "only" about $16.5 million. The severance was apparently in recognition of Mr. Killinger's long service to WaMu. In 2001 Mr. Killinger was named American Banker's "Banker of the Year." However, shortly after leaving WaMu, the bank was seized by the FDIC on September 25, 2008 and sold off to JPMorgan Chase in the biggest failure in U.S. banking history.
Former Merrill Lynch & Co., Inc. Chairman and CEO Ernest Stanley "Stan" O'Neal exited ML&C in October 2007 with a golden parachute worth about $161 million. His resignation came on the heel of losses of about $8 billion at ML&C. His severance included about 75% stock and options, retirement benefits of about $25 million, about $5.5 million in deferred compensation and an additional $10 million in performance awards. Due to the financial turmoil, the value of his package was reported as now being worth "only" about $66 million. Mr. O'Neal led ML&CO to a record profit of $4 billion in 2003 after presiding over the elimination of more than 20,000 jobs at that company.
Former CEO and Chairman Charles O. Prince III of Citigroup, who exited that company in November 2007 was given a golden parachute worth about $30 million. This was about 95% stock and options and retirement benefits of about $1.5 million. Due to the turmoil, the value of his package was reported as now being worth "only" about $15 million. It should be noted that at the time Mr. Prince left Citigroup, he had vested stock holdings worth about $94 million and had received about $53 million in salary over the four years he headed Citigroup.
Former President and CEO Martin J. Sullivan of American International Group, who exited that company in June 2008 and was given a golden parachute worth about $48 million. This was about 40% stock and options and cash benefits of about $19 million. Due to the turmoil, the value of his package was reported as now being worth "only" about $35 million. In 2007 Mr. Sullivan was awarded the American Ireland Fund Leadership Award. He is a recipient of The International Center, New York "Award of Excellence" and in 2007 was awarded as a member of the Order of the British Empire.
Former President, Chairman and CEO G. K. Thompson of Wachovia, who exited that company in June 2008 and was given a golden parachute worth about $9 million. This was about 80% stock and options and cash benefits of about $1.5 million. Due to the turmoil, the value of his package was reported as now being worth "only" about $3.5 million. In the most recent fiscal year, his compensation was reported as being about $22 million.
A Historical Perspective
In 2004, the New York Times had an article entitled "For Wall Street Chiefs, Big Paydays Continue". The following is a link and the article is free, although you may have to "log in" as a member of the NYT's online community.
http://query.nytimes.com/gst/fullpage.html?res=9407EED81630F930A15750C0A9629C8B63
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