Yet another TARP beneficiary…
It’s almost become akin to shooting fish in a barrel: find a TARP recipient — there’s over 400 of them now according to the latest report from Treasury — and then troll through their recent SEC filings to see how at least some of that money was spent on enriching an executive (or two). It’s so common that even the Dilbert comic strip pokes at the phenomenon.
Last night, I was looking at the preliminary proxy filed by TCF Financial (TCB), which paid $4.4 million in “all other compensation” to former CEO Lynn Nagorske. A separate chart notes that the bulk of that — $4.1 million — was for a separation payment for Nagorske, the former CEO who left on Aug. 6 after 2 1/2 years in the top job.
Judging by both the stock chart and the press release announcing the departure, Nagorske didn’t exactly do a great job. After all, Bill Cooper, the man that Nagorske replaced at the beginning of 2006, was brought back in.
When it filed Nagorske’s separation agreement with the SEC back in August, the amount of money was never spelled out. So yesterday’s filing is really the first disclosure. Keep in mind that on Nov. 14, TCF accepted $361 million in TARP money from the government.
Now I know that banks say that the TARP money is separate. And to be fair, while the disclosure was recent, the money appears to have been handed out several months before the bank took TARP funds. But in the end, money is inherently fungible and at the very least, it doesn’t look good to be handing out money with one hand and taking taxpayer help with the other.
Image Source: Minneapolis Collection
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Posted in Tags: banks, severance, TARP |
 5 Comments » |
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February 26th, 2009 at 11:46 am
Has anyone ever considered that:
1. Uncle Sam is a huge investor (sort of like its own giant hedge fund); and
2. Maybe he deserves a seat at the board table, to have some say-so about what happens – and how his money is spent?
February 27th, 2009 at 1:53 pm
Speaking of poorly handled handouts…
I think that Citi’s disclosure that they’re going ahead with the $400m sponsorship of the Mets new ballpark is enough to make me want to break a CEO’s legs.
At least BoA had the decency to break off talks with the Yankees.
February 27th, 2009 at 11:36 pm
Also remember that TCF spent a huge amount of money on naming rights for the new U of Minnesota football stadium. Your tax dollars at work!
March 1st, 2009 at 11:51 am
Perhaps the taxpayers would only have had to pay 357 million instead of 361 million if there hadn’t been such a generous separation agreement.
March 5th, 2009 at 8:38 pm
This banking system is trying to give the entire 361 mill. back to the government and has to wait for the fed to decide if the can give it back http://video.aol.com/video-detail/on-the-record-handing-back-the-handout/3663182949/?icid=VIDLRVNWS03