Raking In The Riches At CUConverts
FIFE, Wash. - (06/07/05) -- Executives and directors atprospective credit union-converts to banks need only see whatoccurred at the Rainier Pacific Savings Bank, known until 2000 asRainier Pacific CU, to see how fast they can accumulate wealth fromthe charter switch. John Hall, longtime president and CEO of theex-credit union, had a million-dollar payday in 2004--the year hetook his former credit union public--with salary and bonus of$253,013; $65,977 in retirement pay; management recognition stockgrants worth $972,000, and options worth as much as $3.6 million,to be vested over the next five years. Documents filed with theSecurities and Exchange Commission also show Hall, who engineeredthe 2000 conversion to mutual savings bank and last year's initialpublic stock offering, has also accumulated $1.8 million worth ofRainier Pacific stock in a little over a year. Other top executiveshave also fared well: Victor Toy, senior vice president, wasawarded $648,000 in restricted stock and as much as $1.9 million instock options and has accumulated $1.5 million worth of RainierPacific stock; Joel Edwards, chief financial officer, got $364,500in restricted stock and as much as $1.3 million worth of optionsand has accumulated $1.2 million in Rainier Pacific stock.Directors, who each earn $14,000 in annual fees, have also faredwell: Board Chairman Edward Brooks has accumulated shares worth$1.1 million; five others: Stephen Bader, Robert Combs, BrianKnutson, Alan Somers and Alfred Treleven III, have each accumulatedshares worth almost $1 million.