There have been quite a few stories written concerning executive compensation for banks partaking in the Treasury’s Capital Purchase Program. The rules clearly spell out, acceptable compensation for the five named executives is capped at $500K and there’s additional restrictions on the well known golden parachutes. But have not seen anything concerning some of the common incentives like cars and country clubs membership that usually come with executive level perks for even a modest-sized bank.
Richard Cupp, the new CEO of Capital Corp. of the West, will get to pick a company car as part of the job, but it can’t cost more than $55,000. That’s according to his employment agreement, filed with federal regulators. Cupp’s salary will be $500,000 a year substantially more than the previous CEO was paid, while Capital Corp. is asking for a $46 million bailout. Perhaps having the CEO drive a used car would help the bank make its case. The bank’s stock has fallen into worthless stock land so far this year. Shares have plunged all the way down to 80 cents, continuing a steep decline that began after a very weak third-quarter earnings report.
Let’s see just who are we bailing out here. Isn’t a captain supposed to go down with the ship instead they are throwing the captain the life raff and the passengers are going down with the ship that the captain torpedoed? Come to think of it the bank is in financial dire straits they should make them bum a ride!