Comments on: On TARP and bankers’ shared sacrifice… http://www.footnoted.com/market-meltdown/on-tarp-and-bankers-shared-sacrifice/ Morningstar's guide to what's hiding in SEC filings Fri, 10 Feb 2012 20:24:57 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Brennan Browne http://www.footnoted.com/market-meltdown/on-tarp-and-bankers-shared-sacrifice/comment-page-1/#comment-6675 Brennan Browne Mon, 03 Nov 2008 23:50:01 +0000 http://www.footnoted.com/?p=2915#comment-6675 I thought some of the most interesting text in The Bank of New York Mellon Corp's 8K was the following provision: "In addition, the Company is required to review its Benefit Plans to ensure that they do not encourage senior executive officers to take unnecessary and excessive risks that threaten the value of the Company. To the extent any such review requires revisions to any Benefit Plan with respect to you, you and the Company agree to negotiate such changes promptly and in good faith." On a related note, Capital Corp of the West (CCOW) received help from the San Francisco Federal Reserve Bank in July 2008, prior to the current bailout package. They disclose in an 8-K filed 10/30/2008 that the Reserve Bank and the FDIC approved the employment agreement of their new CEO. This is the first example I have seen where the government had to approve a compensation package: "On October 28, 2008, Capital Corp of the West (the “Company”) announced that the Federal Reserve Bank of San Francisco and the Federal Deposit Insurance Corporation have approved the employment agreement and compensation terms for Richard S. Cupp in his capacity as president and chief executive officer of the Company and its subsidiary County Bank." Link to CCOW's 8K: http://sec.gov/Archives/edgar/data/1004740/000095013408018758/f50309e8vk.htm Brennan Browne Equilar, Inc. http://www.equilar.com/ I thought some of the most interesting text in The Bank of New York Mellon Corp’s 8K was the following provision:

“In addition, the Company is required to review its Benefit Plans to ensure that they do not encourage senior executive officers to take unnecessary and excessive risks that threaten the value of the Company. To the extent any such review requires revisions to any Benefit Plan with respect to you, you and the Company agree to negotiate such changes promptly and in good faith.”

On a related note, Capital Corp of the West (CCOW) received help from the San Francisco Federal Reserve Bank in July 2008, prior to the current bailout package. They disclose in an 8-K filed 10/30/2008 that the Reserve Bank and the FDIC approved the employment agreement of their new CEO. This is the first example I have seen where the government had to approve a compensation package:

“On October 28, 2008, Capital Corp of the West (the “Company”) announced that the Federal Reserve Bank of San Francisco and the Federal Deposit Insurance Corporation have approved the employment agreement and compensation terms for Richard S. Cupp in his capacity as president and chief executive officer of the Company and its subsidiary County Bank.”

Link to CCOW’s 8K: http://sec.gov/Archives/edgar/data/1004740/000095013408018758/f50309e8vk.htm

Brennan Browne
Equilar, Inc.
http://www.equilar.com/

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