Insiders at Ex-CU Make FastMoney

Register now

ALBANY, Ga. - (07/05/06) – Former credit union HeritageBank of the South wasted little time rewarding its top officers anddirectors after approving a multi-million-dollar stock compensationplan at this year’s annual meeting. Less than a year aftergoing public and a mere two days after approving an ‘EquityIncentive Plan’ of 220,328 restricted shares, the formercredit union granted 144,420 of the shares worth almost $2 millionto the managers and directors, including a maximum 53,300 worthalmost $710,00 to CEO Leonard Dorminey. Documents filed with theSecurities and Exchange Commission also show that six directorsalso received grants of 11,016 shares worth $145,000 each. Therestricted shares vest in equal amounts over the next five yearsbut each of the recipients earns the interest and has voting rightsto all of the shares in the interim. Heritage Bank was chartered in1955 as AGE FCU and converted to a mutual savings bank in 2001,then went public in an initial public offering lastJune.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER