November 20, 2008
14 National City execs could share about $80 million in perks
U.S. Rep. Steven C. LaTourette (R-OH) says 14 National City Bank executives could share nearly $50 million in severance pay, $10 million in deferred compensation, golden parachutes that won’t reflect a tax hit, and numerous other perks, according to documents filed today by PNC at the Securities and Exchange Commission (SEC).
The perks apply to 14 National City executives, but only three are named in the filing: Peter E. Raskind, Chairman and CEO; Daniel J. Frate, Vice Chairman and Executive VP of Retail Banking; and Jon L. Gorney, Executive VP of Corporate Operations and Information Services. National City’s web site identifies just 10 members on its Executive Leadership Team, excluding Raskind.
“When you have 29,000 National City Bank employees in nine states worried about their jobs and retirement, how do 14 people get these perks when billions of taxpayer dollars are making this merger possible? What about the other 28,986 employees and the shareholders?” LaTourette said.
LaTourette said today’s filing came after PNC internally announced that National City and PNC employees will soon learn about job cuts.
Today’s filing outlines perks that could be shared by 14, mostly unnamed National City Bank executives, providing the merger is completed by year’s end:
• $49.49 million in severance agreements, plus any executive subject to the ‘golden parachute’ excise tax will generally “be paid an additional payment such that he will be placed in the same after tax position as if no excise tax had been imposed.”
• $9.4 million in deferred compensation
• Nearly $6 million in Management Incentive Plan (MIP) awards
• $9.3 million in Long Term Cash and Equity Incentive Plan (LTIP) awards