PHILADELPHIA (AP) - The chief executive of Sovereign Bancorp Inc. received a
compensation package last year worth $5.6 million, including a hefty bonus for
staying with the thrift, according to a regulatory filing made Monday.
Joseph Campanelli was given a salary of $826,923 and a bonus of $1.25
million for remaining at Philadelphia-based Sovereign for a year as dictated by
his employment agreement, the Securities and Exchange Commission filing showed.
Starting in April, he will get a salary increase to $875,000.
Campanelli didn't get a bonus for performance for 2007, when the banking
sector was hit hard by the housing mortgage crisis.
Shares of Sovereign steadily headed south in 2007, from a high of $26.59 in
February to a low of $9.92 in November. On Monday, the stock rose 37 cents, or
3.6 percent, to close at $10.52.
Campanelli received other compensation totaling $73,159, which included
nearly $9,600 for club membership, a car allowance of $2,552 and home security
costs of over $49,000.
He also received stock and option awards worth $3.5 million on their grant
dates.
In 2006, his compensation was a much smaller $1.5 million because he was
interim CEO for three months following the ouster of predecessor Jay Sidhu.
Sidhu had been under pressure from unhappy investors for negotiating the
sale of a one-fifth stake to Banco Santander Central Hispano SA without asking
for shareholder approval. Santander later increased its ownership to nearly 25
percent, buying shares in the open market.
In 2007, Campanelli exercised 40,951 stock options with a value of $173,955.
In addition, 6,057 restricted shares vested in 2007 for a value of $158,145.
These figures aren't included in the tally for total compensation because
realizing their value depends partly on an executive's personal finance
decisions.
Instead, The Associated Press calculation of compensation includes salary,
bonus, incentives, perks, above-market returns on deferred compensation as well
as the estimated value of stock options and awards granted during the year.
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