Western Union Delivers For Star Systems' Labry
DENVER-For Edward Labry III, the former chief executive at Concord EFS, the parent of Star Systems, the more than four years since he sold his business to First Data Corp. have been extremely profitable-earning him more than $1 million a month since then. Labry, now president of commercial services for First Data, earned $50 million by exercising First Data options over the past two years, including $13 million last year and $38 million in 2005, according to filings with the Securities and Exchange Commission.
That's on top of more than $5 million in cash compensation. And during a five-week period last winter, Labry earned more than $10 million by exercising 850,000 options in Western Union he obtained from the spin-off of Western Union from First Data, at $8.42 a share. Labry who helped build Concord into the nation's largest electronic funds transfer company, joined First Data when it acquired Concord EFS in April 2003.
First Data had hoped to combine Star Systems with its NYCE EFT network, but was forced by antitrust regulators in the U.S. Justice Department to sell most of NYCE to Metavante. First Data has agreed to be acquired by private equity giant Kohlberg Kravis Roberts & Co. for $29 billion, one of the largest buyouts ever.
Banks Reaching Out To High Net Worth Customers
CHARLOTTE, N.C.-From the Service to the Overserved Department, several major banks are now offering gifts to their high-balance customers. Bank of America, for instance, said it will give its high net worth customers gift certificates worth $500 each, via Donors Choose. Each certificate allows people to make donations to a specific, narrowly focused classroom project at needy public schools in eight states in three metropolitan areas.
U.S. Banker, an affiliate of the Credit Union Journal, quoted Charles Best, CEO of the nonprofit Donors Choose, said he is seeing a growing number of banks using the service as a premium.
"This is something people see as being meaningful, even for a bajillionaire," Best said. RBC Centura, which also uses DonorsChoose, said it ran a successful program during 2006 when it gave away $30,000 worth of $100 certificates to branch managers, who gave away the certificates to customers of their choice. The banks are using funds already budgeted for charitable giving.
Sovereign Encourages Its Customers To Go Paperless
BOSTON-As part of its "Go Paperless" campaign aimed at educating consumers about the benefits of paperless bills, Sovereign Bank and Checkfree are donating $1 to the National Arbor Day Foundation for each new electronic bill that was activated during the eligible time period. The bank and Checkfree issued a statement saying that if every American household viewed and paid bills online, solid waste in U.S. landfills would drop more than 800,000 tons a year, and greenhouse gases would be reduced by 2.1-million tons.
Wells Fargo Earns CRA Points By Supporting CU
SANTA CRUZ, Calif.-Wells Fargo awarded $50,000 in funding, the second payment of a $100,000 commitment to a small business development center founded by Santa Cruz Community CU and two partners. The banking giant was attracted to the venture because of its unique approach in which each of the three participants, which also includes El Pajaro Community Development Corp. and the Central Coast Small Business Development Center, are offering the area's small business owners services that compliment each other. In return for its financial support, Wells Fargo earns Community Reinvestment Act credits.
Mobile Payments Getting Ready To Take Off-Really
CHICAGO-Bankers and the vendors serving the financial services industry say they are beginning to develop mobile banking technologies that their corporate clients, along with the banks' own employees, can use for treasury functions.
"Any significant extension of mobile applications into commercial banking would mark a major turning point, because most of the focus in mobile development has been on the retail side," reported American Banker.
Scholars In River City: Bank, Students Strike Deal
SACRAMENTO, Calif.-River City Bank here is paying 75% of the tuition for a number of students at Cristo Rey High School, a private Catholic school.
In return, the students work at the bank one full day per week. The work-study program teaches teens how to work with money, including how to invest, according to those overseeing the program.
One of the students said his supevisors have become his mentors.
