SC Governor Questions South Financial Group CEO's Retirement
In early September, South Financial Group announced Chairman and CEO Mack Whittle would retire by the end of the year. His retirement, which included a pay package estimated to be worth $18 million, was moved up by two months, "and many have surmised it was done so the bank could apply for federal money tied to the $700 million bailout without disallowing Whittle's golden parachute," Sanford said in the letter, dated Friday and made public Monday.
In the letter, Sanford said he was concerned that "some banks are gaming the system" and are looking for ways to get their portion of the rescue package without having to sacrifice large retirement packages for executives.
Whittle and a company spokesperson weren't immediately available for comment.
South Financial Group, the Greenville, S.C., holding company for Carolina First Bank and Mercantile Bank, Friday said its board named John C. B. Smith Jr. as chairman.
Shares of the company have been particularly volatile recently on fears that it wouldn't be getting federal funds through the Troubled Asset Relief Program. The stock has traded in a range from $3.75 to $12.25 since September.
While South Financial hasn't formally announced it is seeking the rescue help, the Greenville News reported Smith has said the company is pursuing "things along that line."
TARP is geared toward recapitalizing the banking sector but has restrictions on "golden parachute" compensations for senior executives.
-By Kejal Vyas, Dow Jones Newswires; 201-938-5460, kejal.vyas@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=IDbR9DERIRN9iLRqXQUEig%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 10, 2008 17:35 ET (22:35 GMT)
Publié le 10 novembre 2008 Copyright © 2008 Dowjones
Partager sur:
