Lighting up their lives…

May 31, 2006

Being a former executive at GE is proving to be a pretty lucrative calling card for some top execs. Last week, the NY Times wrote in great detail about the good fortune of Robert Nardelli, who now runs Home Depot (HD). And yesterday, Doral Financial (DRL) filed this exhibit to an 8-K announcing the appointment of their new President and CEO, Glen Wakeman.

Wakeman, who will be taking over the troubled Puerto Rican-based bank once it files its delayed 10-K for 2005, will be paid $1 million a year and is guaranteed a bonus of $1.5 million for each of the next two years, even if, presumably, the stock continues to tank. There’s also 200,000 restricted shares, 400,000 options. And the cherry-on-top is a $6 million escrow for pension benefits that will be payable in $375K installments over the next 16 quarters.

One can only hope that Doral’s investors, who have watched their investment free-fall since the beginning of 2005, wind up doing half as well. Otherwise, this turns into yet another high-priced hire that doesn’t live up to the hype.

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