Millions in Compensation for CIT Group Bank Execs

It’s hard to not draw some comparisons between the paltry reinvestment record of OneWest Bank versus the wildly generous compensation CIT Group (which bought OneWest) has provided to its bank executives.

When CIT Group fired 14 executives in December 2015, it included $60 million in severance packages. 

We learn from the WSJ that this includes:

Joseph Otting “earning” $24.9 million in total compensation during 2015, which includes a $12 million severance payment.

$10.9 million for Steve Mnuchin as a “severance” for him no longer serving as Vice Chair of the CIT board.  (Remember, this is the part-time position he was allowed to hold while ALSO running his hedge fund, Dune Capital.)

As part of his exit from CIT Group, Thain allegedly engineered a change to the company’s retirement policies to benefit….wait for it….John Thain!  Reuters reported the change may not cover all of Thain’s vested stock, but it could be worth an estimated $13 million.

Mind you, the CIT board did slap Thain’s hands with his handling of the OneWest merger, only awarding him 2 out of 20 possible points.  But, the point remains that this is the same board that awarded him this golden parachute above.

Thain has quite a history when it comes to bonuses for all of his hard work! He allegedly requested either a $10 million or $40 million bonus at Merrill Lynch (depends which media account you believe)  is back at it.

The conclusion the bank wants us to draw from this behavior?  California communities should be content (and quiet!) with CIT Group’s weak reinvestment plans at the same time the bank doles out millions to its executives.  Sounds familiar, doesn’t it?