This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Congress Got 'Say-on-Pay" Right

Stocks in this article: BAC C COF TCB HBAN FMER BPFH EBTX CSE STL PACW

CapitalSource (CSE) - Shareholders will vote on Thursday, with Co-CEO Steven Museles slated to receive total compensation of $2.6 million for 2011, increasing from $1.3 million in 2010. The other Co-CEO, James Pieczynski, is slated to receive total 2011 compensation of $1.3 million, matching his 2010 compensation. Glass Lewis said that "shareholders should be concerned with the Company's failure to implement a performance-based long-term incentive plan with objective metrics and goals," and also based its recommendation on "excessive severance payments" for executives, along with "excessive promotion payments."

Boston Private Financial Holdings (BPFH) - Shareholders will vote Thursday, with CEO Clayton Deutsch slated to receive total compensation of $2.8 million for 2010, declining from $3.7 million in 2011. Glass Lewis said that the company "has not provided a sufficient discussion" regarding "performance goals under both short- and long-term incentive plans," that "shareholders may have difficulty determining how performance translated into payouts," and that Boston Private "has exhibited a consistent failure to align executive pay with performance."

Sterling Bancorp (STL) will hold its vote on May 3, with CEO Louis Cappelli slated to receive total 2011 compensation of $5.2 million, increasing from $4.0 million a year earlier. Glass Lewis said that "in fiscal year 2011 the Company was deficient in linking pay with performance," and that "the board has failed to provide shareholders with sufficient information with which to better evaluate the Company's executive compensation practices and procedures."

PacWest (PACW) will hold its shareholder vote on May 9, with CEO Matthew Wagner slated to receive total compensation of $4.2 million for 2011, increasing from $3.4 million in 2010. Glass Lewis said that PacWest "has provided adequate disclosure with respect to its compensation policies and incentive plans," however, long-term incentive payments are "based on a simple performance hurdle," adding that "a more rigorous performance formula that bases payouts on the extent to which the Company exceeds challenging performance targets or thresholds would better align the long-term interests of management with those of shareholders."

Douglas Ormond, a veteran Wall Street portfolio manager at New York-based hedge fund Otlet Capital has a differing viewpoint on two of the above companies, saying "the Capital One CEO is the founder and builder of the company and has steered it through the financial crisis, while TCF Financial's CEO came out of retirement to save the company. Both have time and time again proven themselves not to be sellers."

-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs