Wells Fargo buyout Wachovia: Execs set to receive $98.1 million

Nov 28, 2008 | Comments 5

The top ten executives of Wachovia Corp (NYSE: WB) will be eligible for huge severance pay amounting to $98.1 million after the troubled bank gets brought out by Wells Fargo & Co (NYSE: WFC) in December.

Wachovia shareholders will vote on the merger with Wells Fargo on December 23 according to papers filed with the Securities and Exchange Commission.

According to Wachovia if the deal closes by December 31 the executives will lose their jobs and will receive severance under their employment agreement. This could see the top executives getting a total of $2.5 million in stock-based awards.

The merger deal was announced October 3 which stated that Wells Fargo was acquiring Wachovia in an all stock deal costing $15.1 billion.

Citigroup originally was in a purchasing deal of Wachovia’s banking division for $2.16 billion, not long after this was announced Wells Fargo offered to buy the entire troubled bank.

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  • Bernard Goldstein

    As usual the poor stock owners get nothing but the top executives who did a bad job and caused millions of people to loose their entire savings get a 98 million doller bonus.This does not seem to be fair and each one of them should be investigated for fraud and put in jail if found guilty–not rewarded with a bonus of stock holders money.

  • mike

    Why is this right? Why is this acceptable? Why do the 1% at the top get a free pass on performance evaluations?

  • Sanford Evans

    Don’t just complain here. Nothing will come of it. Get on the phone and call your Congressman or Barney Frank. That way you might get some meaningful action.

  • Irvin Watkins

    Wish I could agree that it would do some good to call your congressman. I contacted Senator Jim Web, and was told that their office policy is not to call private companies on behalf of constituents. I pointed out that Congressman Maxine Waters of CA, has done just that, the senate staffer seemed incredulous that it was part of their job to help constituents…rather than bank who can make large campaign contributions… I even voted for Webb, over his idiot competition, but what difference did it make? American democracy is a system where voters elect who will be bought…..a clever, mostly secret sham!

  • Bryant Levine

    The “Devil” is a clever creature. Go back and watch the movie “The Devil’s Advocate”…LOL.