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The Wells Fargo deal for Wachovia could mean a $98.1 million payday for 10 of the Charlotte bank’s top executives.
The payout calculation, listed in a federal filing today, excludes CEO Bob Steel, who joined the bank in July without an employment agreement. Specific payments are not identified by executive.
The payout assumes the deal is completed on Dec. 31, and that the Wachovia officers “experience a qualifying termination of employoment immediately thereafter.”
At least five top Wachovia executives, including vice chairman Ben Jenkins, are expected to leave following the union with the San Francisco bank. Only one, David Carroll, will be part of Wells’ 12-member top management team. Carroll, head of Wachovia’s capital management group, will be a senior executive vice president with Wells, responsible for its wealth management group.
“The terms of his employment with Wells Fargo, including his compensation arrangements, have not yet been finalized,” the proxy said.
Wachovia shareholders are scheduled to vote on the deal on Dec. 23. A Charlotte judge is hearing arguments today in a last-ditch, long-shot bid to halt the merger that puts at risk some of the city’s highest paying jobs. Wachovia has about 20,000 local employees.
Three or four Wachovia directors will be appointed to the Wells’ board following the merger, the proxy said. Steel asked that he not be covered by a severance agreement when he joined the bank following the ouster of Ken Thompson. His options are worthless, and a personal investment in Wachovia stock has lost much of its value.
