National City Bank sale could mean $60 million for top execs(after 43% stock drop)

[Algorem]

http://blog.cleveland.com/business/2008/03/national_city_sale_could_mean.html

Posted by Peter Krouse March 19, 2008 18:47PM
Categories: Breaking News, Impact

If National City Corp. were sold tomorrow, more than $60 million of the proceeds could go to four top executives.

The payouts would be made to the officers should they be canned within three years of a takeover, or in some instances if they decide to leave on their own.

Such arrangements are common between large companies and key employees. They are designed to keep executives motivated during times of turmoil or while a sale is being explored, said Michael Ellis, a mergers and acquisitions attorney with Porter Wright Morris & Arthur in Cleveland.

Ellis declined to comment specifically about National City...



National City shares drop about 43 percent

http://www.mansfieldnewsjournal.com/apps/pbcs.dll/article?AID=/20080318/BUSINESS/80318008

CLEVELAND (AP) -- ...

Other banks went against any downward trend. Shares of KeyCorp, PNC Financial Services and US Bancorp rose.

National City's uncertainty in the market can also be tied to concerns it is for sale. The Wall Street Journal reported last week that National City's investment bankers are shopping the bank...


"We certainly would surmise that the volatility in our share price today is related to the market reaction to the Bear Stearns announcement from over the weekend," she said. "Beyond that, I have nothing else to point to."

She could not speak to why National City appears to have taken a greater hit than similar banks...

[HughBeaumont]

1. Yeah, HOW many people did this suit-and-tie pile of crap fire?

All so these guys can sip champagne in their mansions next to their fire pits of money? Their stock lost a whale amount of value, there's rumors of their sale, yet who pays? Not the brass.

I'm disgusted to work in the same vicinity of fire-a-thon banks like Key and NSC.