Glenfed's Trafton gets $1 million as bonus for engineering recap.

SAN FRANCISCO - Glendale Federal Bank's chief executive, Stephen J. Trafton, is receiving a $1 million bonus for engineering the long-shot recapitalization of the troubled thrift earlier this year, according to the company's annual proxy statement.

The payment could rank Mr. Trafton as the thrift industry's highest paid executive, when 1993 compensation figures are released. Mr. Trafton's 1993 bonus recognizes his extraordinary accomplishment in raising some $450 million for the Glendale, Calif-based thrift, one of the largest and most complex private rescue operations ever of a financial institution.

Promoted to CEO

The recap took place under the threat of a regulatory takeover of Glendale Federal, which was losing money and short of capital.

The special payout is in addition to Mr. Trafton's base pay of $680,000 for fiscal 1993, which was up 50% from his salary for the previous year. Mr. Trafton's total cash compensation of $1.68 million for fiscal 1993 was more than that paid to any thrift executive in 1992, according to SNL Securities.

During fiscal year 1992, which ended on June 30 of that year, Mr. Trafton was promoted to chairman and chief executive in addition to his previous positton as president of Glenfed Inc., Glendale Federal's former parent company.

In explaining the bonus, the board's compensation committee noted that Mr. Trafton, 47, "played a particularly critical row" in rescuing the nation's fourth largest thrift.

An Earlier Bonus

Jerry St. Dennis, the former chairman of Los Angeles-based California Federal Bank, was awarded a $325.000 bonus in 1992 for completing a similar, but significantly less-difficult recapitalization.

Analysts said Mr. Trafton is entitled to a big bonus. But they questioned the size and timing of the payment.

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