New York Community Bancorp said it awarded newly appointed Chief Executive Joseph Otting a pay package worth as much as $5.75 million for his first year at the troubled bank, plus stock options already $21.3 million in the money.
The lender, known for catering to New York apartment landlords, disclosed Otting’s initial compensation in a regulatory filing Friday. The former U.S. comptroller of the currency was tapped last week to take over the bank as it receives more than $1 billion in fresh equity from an investor group led by former Treasury Secretary Steven Mnuchin.
Mnuchin and Otting swept in as the shares plunged on word that the bank was looking for a cash infusion. The pressure had been mounting for weeks over concerns about the lender’s exposure to office buildings in the work-from-home era and apartment complexes subject to strict limits on rent. The stock ended up shedding just 3.7% in a week that included an intraday swoon of 47%.
Otting, who formally takes over April 1, will get a base salary of $1.25 million, according to the filing. He’s eligible to receive a target cash bonus of $2.25 million, which could be raised to a maximum of $4.5 million.
The bank also granted him a package of options to acquire 15 million shares at a price of $2 apiece. That will vest in 12 quarterly installments. The stock closed at $3.42 on Friday.
Otting plans to run the company from its headquarters in Long Island’s Hicksville, with the firm promising to pay for his relocation to the New York area, the filing shows.
The company also disclosed rewards for Alessandro DiNello, who became executive chairman and CEO this year, taking charge of the lender in the midst of the tumult. He will get a monthly base salary of $500,000 paid in cash and stock for that work. When he returns to his post as non-executive chairman, his base pay will decline to $450,000 per year.
Bre Bradham, Bloomberg , 2024-03-13 19:29:33
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