{"id":292769,"date":"2010-02-08T10:50:17","date_gmt":"2010-02-08T15:50:17","guid":{"rendered":"http:\/\/www.footnoted.org\/?p=4521"},"modified":"2010-02-08T10:50:17","modified_gmt":"2010-02-08T15:50:17","slug":"it%e2%80%99s-time-for-raises-and-bonuses-at-kbw%e2%80%a6","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/292769","title":{"rendered":"It\u2019s time for raises and bonuses at KBW\u2026"},"content":{"rendered":"<p><a href=\"http:\/\/www.footnoted.org\/wp-content\/uploads\/2010\/02\/Matador.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-thumbnail wp-image-4522\" src=\"http:\/\/www.footnoted.org\/wp-content\/uploads\/2010\/02\/Matador-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" \/><\/a> When a company files a document with the SEC at 5:10 on a Friday evening, it\u2019s a little like waving a red cape at the footnoted staff and yelling, \u201cLook at me!\u201d (although, thankfully, there\u2019s no blood and gore involved).<\/p>\n<p>At least, that was the metaphor that came to mind when we saw the <a href=\"http:\/\/www.sec.gov\/Archives\/edgar\/data\/1063494\/000090514810000228\/efc10-60_8k.htm\">8-K<\/a> that <a href=\"http:\/\/www.kbw.com\/\">KBW, Inc.<\/a>,\u00a0the parent company of full-service investment bank Keefe, Bruyette &amp; Woods, Inc., filed late last Friday.<\/p>\n<p>It was a meaty filing in several ways, starting off with the announcement that its top five executives received cash bonuses totaling more than $6.35 million and 110,586 shares of restricted stock for their work in fiscal year 2009.\u00a0 The specific awards were:<\/p>\n<ul>\n<li>Chairman\/CEO John Duffy got $1,575,500 cash and\u00a027,423 shares of restricted stock;<\/li>\n<li>Vice Chairman\/President Andrew Senchak got $1,575,500 cash and 27,423 shares of restricted stock;<\/li>\n<li>Vice Chairman\/COO Thomas Michaud got $1,575,500\u00a0cash and 27,423 shares of restricted stock;<\/li>\n<li>Chief Financial and Administrative Officer\/EVP Robert Giambrone got $941,875 cash and\u00a016,394 shares of restricted stock; and<\/li>\n<li>General Counsel\/EVP Mitchell Kleinman got $685,000 cash and\u00a011,923 shares of restricted stock.<\/li>\n<\/ul>\n<p>A third of each man\u2019s RSUs will vest on February 23 in 2011; another third will vest on February 23, 2012; and the final third will vest on February 23, 2013.<\/p>\n<p>The company also announced that, as of February 1, 2010, its Compensation Committee had raised the base salaries for Duffy, Senchak, and Michaud to $400,000 each, while the base salaries for Giambrone and Kleinman increased to $325,000 each.\u00a0 The employment agreements run for a three-year term, but they have automatic renewal provisions (unless one of the parties notifies the other that it doesn\u2019t want to renew the agreement).<\/p>\n<p>According to the latest <a href=\"http:\/\/www.sec.gov\/Archives\/edgar\/data\/1063494\/000095012309007276\/y76620def14a.htm\">proxy<\/a>,\u00a0filed in April, 2009, the executives\u2019 new salaries give $75,000 more per year to Duffy, Senchak, and Michaud, $40,000 more to Kleinman, and $35,000 more to Giambrone.\u00a0 In every case, the bonus is higher than it was in 2008 (but not by <em>that<\/em> much), yet lower than it was in 2006 or 2007.<\/p>\n<p>It\u2019s true that the stock is up about 34 percent over a year ago, and the company\u2019s total revenues (according to the <a href=\"http:\/\/www.sec.gov\/Archives\/edgar\/data\/1063494\/000095012309059396\/y80239e10vq.htm\">10-Q<\/a> filed last November)\u00a0for the nine months ending in September, 2009 were positive, compared to a net loss for the same period in 2008.\u00a0 Yet on page 21 of that Q, the company notes that despite some improvement and stabilization in the financial services sector in the first nine months of 2009:<\/p>\n<blockquote>\n<p>\u201c\u2026the sector remains under stress and the market stability and continuation of current trends is not certain. The valuation of certain classes of assets remains uncertain and loss reserves have been increasing reflecting continuing concerns in the credit quality of commercial real estate and personal lending and securitization markets have not broadly reopened. U.S. unemployment remains high and lenders have not widely reopened consumer and commercial credit.\u201d<\/p>\n<\/blockquote>\n<p>In light of the raises and bonuses given to the top executives, though, apparently that uncertainty is less worrisome than it used to be.<\/p>\n<p><em>Image source:\u00a0 Jon Nazca\/Reuters\/The Guardian U.K.<\/em><\/p>\n<p><a href='http:\/\/www.footnoted.org\/about-2\/footnotedpro\/'><img style='border: 0px; width: 580px;' src='http:\/\/footnoted.org\/wp-content\/uploads\/footnoted_pro_banner.gif'><\/a><\/p>\n<p><a href=\"http:\/\/feedads.g.doubleclick.net\/~a\/r7taCKMSvsbW9I5V-SrjlBb2Erw\/0\/da\"><img decoding=\"async\" src=\"http:\/\/feedads.g.doubleclick.net\/~a\/r7taCKMSvsbW9I5V-SrjlBb2Erw\/0\/di\" border=\"0\" ismap=\"true\"><\/img><\/a><br \/>\n<a href=\"http:\/\/feedads.g.doubleclick.net\/~a\/r7taCKMSvsbW9I5V-SrjlBb2Erw\/1\/da\"><img decoding=\"async\" src=\"http:\/\/feedads.g.doubleclick.net\/~a\/r7taCKMSvsbW9I5V-SrjlBb2Erw\/1\/di\" border=\"0\" ismap=\"true\"><\/img><\/a><\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?a=DN8-QPt4aDU:0cpYU8yCF30:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?a=DN8-QPt4aDU:0cpYU8yCF30:dnMXMwOfBR0\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?d=dnMXMwOfBR0\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?a=DN8-QPt4aDU:0cpYU8yCF30:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?i=DN8-QPt4aDU:0cpYU8yCF30:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?a=DN8-QPt4aDU:0cpYU8yCF30:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?i=DN8-QPt4aDU:0cpYU8yCF30:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?a=DN8-QPt4aDU:0cpYU8yCF30:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/Footnotedorg?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/Footnotedorg\/~4\/DN8-QPt4aDU\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a company files a document with the SEC at 5:10 on a Friday evening, it\u2019s a little like waving a red cape at the footnoted staff and yelling, \u201cLook at me!\u201d (although, thankfully, there\u2019s no blood and gore involved). At least, that was the metaphor that came to mind when we saw the 8-K [&hellip;]<\/p>\n","protected":false},"author":4072,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-292769","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/292769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4072"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=292769"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/292769\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=292769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=292769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=292769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}