CEOS with Large Paychecks in Common
Featured on this page are the chief executives who walked home in 1990 with the biggest pay checks, including salary, bonus and other cash compensation. They are the people who topped the list of highest paid banking executives (See table on page 6A).
Bram Goldsmith Chairman City National Corp.
Top billing for best-paid banking executive of 1990 goes to City National Bank's Bram Goldsmith, who received $2.5 million in compensation last year. That number represents a $169% rise over his 1989 pay of $941,452. The reason for the big jump is that Mr. Goldsmith's 1990 pay included a one-time $1.5 million cash payment to cover taxes after cashing in on stock options.
Mr. Goldsmith has been in his present post as chairman and chief executive officer of the bank since 1975. Prior to joining City National, Goldsmith served for 25 years as president and chief executive officer of Buckeye Realty and Management Corporation, the largest privately owned commercial real estate development company in Southern California.
Banking on its proximity to the Hollywood hills, City National has made a success of marketing its services to the stars. Its roster of celebrity customers boasts Frank Sinatra, Kirk Douglas, Steven Spielberg, and many others.
Mr. Goldsmith serves on the board of directors for Republic Pictures and the Los Angeles Philharmonic Association. In addition, he is a member and past president of the Hillcrest Country Club, an exclusive celebrity watering hole.
Richard M. Rosenberg Chairman BankAmerica Corp.
The second highest paid bank executive was Richard M. Rosenberg, the relatively new chairman of BankAmerica Corp. and its main subsidiary, Bank of America. His remuneration last year was $1.6 million, up 28% over 1989.
The $1.6 million figure does not include $2.35 million in long-term performance incentive pay received by Mr. Rosenberg last year when he signed on as chairman of the bank.
Mr. Rosenberg became chairman of the bank in February of 1990. Previously he had been vice chairman of the Board of Directors and head of the California Banking Group, responsible for retail banking activities in California and commercial real estate lending nationwide.
Prior to joining Bank of America in April 1987, Mr. Rosenberg served as president and chief operating officer of Seattle-First National Bank and Seafirst Corporation. He had also served as vice chairman and director of Wells Fargo Bank, capping a 22-year career there.
Phillip R. Boyce Chairman Pacific Western Bancshares
Although his bank is not even in the nation's top 300, Phillip R. Boyce joined the Millionaire's Club in 1990, pulling in $1.37 million, a 50% raise from 1989.
Mr. Boyce founded Pacific Valley Bank in 1975. The company converted to a bank holding company in 1980 and changed its name at that time. In 1987, the company merged with Cobanco Inc., Santa Cruz, Calif. The two principal subsidiaries, Pacific Valley Bank and County Bank and Trust, merged to become Pacific Western Bank.
Under Mr. Boyce's direction, the merged company has grown to more than $1.2 billion in assets.
Dennis Weatherstone Chairman J.P. Morgan & Co.
J.P. Morgan, which has a reputation for doing well by its executives (pay wise) did nothing to change this perception in 1990. Of 31 banking executives reported to be earning over $1 million for the year, five come from Morgan, including chairman Dennis Weatherstone, who pulled in a cool $1.6 million, up 9.2% from the previous year.
Charles S. Sanford Jr. Chairman Bankers Trust New York Corp.
Although there were no raises for Bankers Trust executives in 1990, five of the bank's top dogs still managed to rake in more than $1 million each in compensation, including bank chairman Charles S. Sanford Jr., who made $1.5 million.
Joseph J. Pinola Chairman/executive committee First Interstate Bancorp
The retired chairman and chief executive officer of First Interstate Bancorp made $1.5 million in 1990, his last year in the top spot. Joseph J. Pinola retired on June 1, 1990, and became a member of the board of directors and chairman of the board's executive committee.
Charles T. Fisher 3d Chairman NBD Bancorp
Charles T. Fisher 3d, who just squeaked into the top 10 of the 1990 ranking of best-paid bank executives, received $1.36 million in compensation, 12.4% more than in 1989.
As chairman and president of NBD Bancorp and its principal subsidiary, NBD Bank, Mr. Fisher has plotted a steady course for slow, regular growth for the bank throughout the Midwest. The Detroit-born executive has expanded the bank's reach from its Detroit headquarters into Illinois, Indiana, and other parts of Michigan.
Mr. Fisher joined NBD as an assistant vice president in 1958. He was promoted to vice president in 1961, and was elected senior vice president in 1966. In 1969, he was promoted to executive vice president and elected to the board of directors. In 1972, he became president.
Joe L. Allbritton Chairman Riggs National Corp.
Despite a minor pay cut last year (3.4%), Joe L. Allbritton, chairman and chief executive officer of Riggs National Corp., still managed to take his place in the Millionaire's Club, with compensation of $1.4 million.
Lloyd P. Johnson Chairman Norwest Corp.
A 7.7% raise went to Lloyd P. Johnson, chairman and chief executive officer of Minneapolis-based Norwest Corp. Mr. Johnson forcefully pulled his bank out of the doldrums last year; after posting an 1989 return on assets of 0.84%, the bank bounced back with a respectable 1.06 ROA for 1990.
Mr. Johnson's 1990 pay was $1.4 million.
Carl E. Reichardt Chairman Wells Fargo & Co.
Although Wells Fargo Bank posted a stronger return on assets in 1990 (1.34%) than it did in 1989 (1.2%), chairman Carl E. Reichardt still took a 3.6% pay cut, reflecting the bad times in the industry.
Even with lower pay, Mr. Reichardt managed to place fifth on the list of most highly compensated executives at publicly traded banks. His 1990 compensation was $1.5 million.