MB Financial Inc. in Chicago said it has approved large salary increases for its two highest-paid employees, because as a participant in the Troubled Asset Relief Program it cannot continue to pay them bonuses.
In a filing Monday with the Securities and Exchange Commission, the $14 billion-asset company said it would increase the base salary of Mitchell Feiger, its president and chief executive, by nearly 75%, to $1.1 million, for 2010. The salary of Jill E. York, the vice president and chief financial officer, will increase 53% next year, to $450,000.
MB said the salary increases cannot be considered "raises" because the total amount of compensation for Feiger and York would not exceed this year's level. It said the adjustments were made to comply with restrictions Congress imposed on companies that received Tarp capital.
MB took a $196 million infusion from the Treasury Department last December.