Dow Jones
WASHINGTON -- Hudson United Bancorp cut this year's base pay of chairman, president, and chief executive Kenneth T. Neilson to $525,000, from $750,000, according to a proxy statement filed Thursday with the Securities and Exchange Commission.
The banking company cited the termination of its proposed merger with Dime Bancorp for the adjustment. Hudson United said it originally increased Mr. Neilson's base pay to $750,000 because the company's size and his responsibilities were expected to increase substantially with the Dime merger.
His base pay is still an increase over last year, when Mr. Neilson received $1.4 million: $450,000 in base pay, a $450,000 bonus, and $521,250 in restricted stock awards. Hudson United said Mr. Neilson is eligible for bonuses equal to 100% of his base salary this year.
Dime and Hudson United agreed to terminate their merger agreement in late April. The termination agreement called for Hudson United to receive between $50 million and $92 million if Dime merges with or sells "substantial" assets to another company by Oct. 28, 2001. If Dime does not merge or sell the assets by that date, Dime would pay Hudson United $15 million.
Four months ago North Fork Bancorp launched a hostile bid to buy Dime at a price then valued at $17 a share, or about $1.89 billion.
Hudson United, of Mahwah, N.J., is the holding company for Hudson United Bank.
