Chief Executives At Pioneer CU ConvertHeld Out For Big Payday
FEASTERVILLE, Pa. - (05/18/05) -- The two main engines behind theconversion of IGA FCU to mutual savings bank in 1998 sought out bigpaydays for themselves before selling the first creditunion-convert to go public to a local bank just two years later,according to documents reviewed this week by The Credit UnionJournal. Both Jack O'Connell, chairman of the board of what wasby-then called IGA Federal Savings Bank, and a founder of theformer credit union, and credit union-turned thrift CEO MarioIncollingo, Jr., insisted on lucrative stock options and severancedeals for themselves and other insiders of the ex-credit unionbefore they agreed to sell the institution to PSB Bancorp., justmonths after IGA's conversion to stock, the documents, filed infederal court in Philadelphia, show. The IGA executives only agreedto the sale to PSB Bancorp after they were assured PSB would amendits stock option plan to accommodate them. As a result, bothexecutives of the landmark credit union-convert left PSB Bancorplast year with million-dollar paydays: O'Connell with $600,000worth of stock and a $450,000 severance package; and Incollingowith $765,000 in stock and a $300,000 severance.