Posted on: Friday, May 21, 2004
Merger means rewards for banks' executives
By Deborah Adamson
Advertiser Staff Writer
Top executives from Central Pacific Financial and the parent of City Bank will be reaping big rewards from their $420 million merger.
According to a Securities and Exchange Commission filing yesterday, Central Pacific CEO Clinton Arnoldus will be receiving a $1.08 million bonus for completing the merger. In addition, his three-year employment contract will give him a base salary of $600,000. He also gets stock options which he can convert to as much as 180,000 shares of the new bank over three years.
Central Pacific's Neil Kanda will make $285,000 a year as president and chief operating officer of the merged company.
CB Bancshares CEO Ron Migita will receive $2 million, triggered when there's a change in control of the bank, plus a lump sum of $900,000 as part of his retirement benefits. He also gets executive deferred compensation of $600,000.
Once he joins the combined company as non-executive chairman, Migita will receive a base salary of $200,000 a year and $234,000 will be paid to fund his existing life insurance policy. His employment contract will span two years.
Richard Lim, president and chief operating officer of City Bank, also will get $2 million when control changes at the bank and retirement benefits of $9.5 million. When he joins the merged company as senior vice president of mortgage banking, he will be given a base salary of $150,000. He also will get $71,000, paid into his life insurance policy.
Dean Hirata, City Bank's chief financial officer who will hold the same position at the new company, will get a base salary of $200,000. He also gets $40,000 paid towards his life insurance policy. In addition, after age 65, he gets $20,000 a year for 20 years. He will also gets at least $830,000 in severance if he leaves the company under certain circumstances.
Douglas Weld, executive vice president of City Bank, will take in $195,000 a year for three years. He also stands to get severance compensation of at least $800,000. Weld will be Central Pacific's executive vice president and chief credit officer.
Warren Kunimoto, executive vice president of City Bank, will receive $672,000 because there was a change in control of the company. Retirement benefits are $11,000 a month for 20 years, starting at 65 years of age.
At Central Pacific, Kunimoto will earn $120,000 a year in base salary for three years as senior vice president of information technology. Also $41,000 will be paid into his life insurance policy.
Lionel Tokioka, chairman of CB Bancshares, will become a senior advisor to Central Pacific at a salary of $100,000 a year for two years.
Last month, CB Bancshares agreed to Central Pacific's latest offer to merge. CB Bancshares executives had fought the merger for a year.
The merger still needs shareholder approval.
Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.
