National City's $46 million man (company's profit was declining and its stock price had sunk by half

[Omaha Steve]

http://blog.cleveland.com/plaindealer/2008/04/national_citys_46_million_man.html

Posted by Robert Schoenberger April 09, 2008 05:49AM

As the mortgage crisis hammered National City Corp., former Chief Executive David Daberko left the company with more than $46 million in pay, benefits and perks earned in his last three years.

The company's profit was declining and its stock price had sunk by half in the six months before Daberko left in December. He took with him a $2.1 million agreement not to compete against the bank and $22 million in pension plans - enough to pay him millions annually until he dies.

Meanwhile, retirees watched the values of their 401(k) accounts evaporate after National City's stock price hit its peak in March 2007, only to fall steadily until early this year - when the bottom fell out.


# File PhotoHow does the $46 million break down? $8,535,270 - Salary, bonuses and perks 2005-2007
# $5,106,325 - Stock sales 2005-2007
# $21,871,782 - Pensions
# $2,080,000 - Non-compete agreement
# $8,751,384 - Stock holdings


National City's finances have hemorrhaged under the weight of up to $25 billion in risky loans, and the company said April 1 that it was exploring "strategic alternatives" to get out of the jam.

Attempts to reach Daberko this week through National City were unsuccessful. The former CEO sold his Hunting Valley home in 2005.

Property records show he owns a $2 million home in North Palm Beach, Fla.

FULL story at link.

[karab]

1. Redlining

This mortgage crisis is just an excuse for the banks to go back to redlining.

[Jim Sagle]

2. "He took with him a $2.1 million agreement not to compete against the bank "

With his record, they should have paid him if promised to compete against the bank.