Former Directors Cash In At CU-Turned-Bank
Three long-time directors of Atlantic Coast Federal Savings Bank who helped engineer the institution's conversion from a credit union were rewarded with lucrative retirement presents during last week's first stockholders meeting of the newly public bank holding company.
The three former volunteer credit union directors: John Hinson, 72; Cyril Morris, 81; and I.J. McGahee, 79, who have earned annual directors fees of as much as $26,000 since converting the credit union at the end of 2000, were each awarded $10,000 a year retirement payments and a special $52,000 Director Emeritus package, according to documents reviewed by The Credit Union Journal.
That's on top of almost $600,000 of stock in the newly public bank, known until December 2000 as Atlantic Coast FCU, with which the three retired railroad workers at CSX Transportation will also retire.
Stockholders at last week's annual meeting also approved lucrative insider benefits that include more than $5 million in stock grants and options for top executives and directors. Atlantic Coast FSB was chartered as Atlantic Coast FCU in 1939.