CU Conversion As A RetirementPlan
CHULA VISTA, Calif. - (04/14/06) Directors thinking ofconverting their credit union to a bank as a retirement nest eggwill want to look at three retirees of Rohr Corp., who took thecompanys former credit union, known as Pacific Trust FCU,public after converting it to a mutual savings bank. Since sheddingits credit union charter in January 2000, then launching an IPO 16months later, the ex-credit union now known as Pacific Trust Bankhas tripled both its size to $750 million and its share price toalmost $30, and created millions of dollars in benefits for itsformer volunteer directors. As a result, each of the three Rohrretirees--former Chairman Alvin Majors, Donald Purdy and FrancisBurke, and a fourth, ex-credit union director, Kenneth Scholz--haveearned $1 million on the 50,000 shares they bought in the May 2002IPO, according to documents filed with the Securities and ExchangeCommission. Each has also been granted stock options worth another$300,000. Thats on top of the $10,000 annual board fees paidto the ex-volunteer credit union directors. Each of the four nowowns Pacific Trust Bank stock worth $2 million. Benefitting themost from the conversion was Hanz Ganz, president and CEO of thecredit union-convert. Ganz has also earned $1 million from the50,000 shares he bought in the IPO, but has also been granted55,000 restricted shares worth $1.6 million; 23,707 shares foremployee stock ownership plan worth $700,000, and 134,500 optionsvalued at $1.5 million. Thats not counting $1.6 million incash compensation he was paid since the 2001 switch to bank. The181,324 shares and 134,500 options Ganz owns give him a stake inthe former credit union valued at almost $10 million.