Thursday, February 28, 2008

And Where Are The Shareholder's Yachts?

Old Kent Bank was a Grand Rapids institution that was sold out by its management to an Ohio Based bank with the worst name in corporate America: Fifth Third Bank. Old Kent's CEO made a bundle (as they always do) and 5/3 has proceeded to lose a lot of Old Kent's West Michigan franchise.

Last year, 5/3's stock absolutely tanked, falling from $42 to $22 reflecting poor operating performance. Meanwhile, it was just announced that the captain of the ship received compensation of $10 million which included $28,682 in country club dues!

There is something profoundly broken in corporate governance when such pathetic performance earns a CEO $10 million. He should be fired, not rewarded.

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