From a Bloomberg News article on executive compensation in the financial industry:
Henry Meyer III of KeyCorp, a Cleveland-based lender, topped the ranking of those providing the least value for the years 2008 and 2009. Meyer, 60, received a 21 percent increase in his 2009 compensation, to $8.15 million, though KeyCorp posted eight consecutive quarterly losses for the period ended on March 31.
The lender is still sitting on $2.5 billion in TARP funds.
The least-value ranking is based on KeyCorp's stock return for 2008 and 2009 -- down a total of 76 percent to $5.55 from $23.45 -- combined with Meyer's pay over the same period per million dollars of assets.
KeyCorp spokesman Bill Murschel says Meyer was rewarded for "strengthening capital levels, liquidity and funding ratios." He says Meyer's base salary increase, to $1.64 million, was funded in stock and can't be redeemed until the bank pays back TARP.
Mr. Meyer's executive bio says he's been working at the bank since 1972 and that "He is a past member of the board of the Federal Reserve Bank of Cleveland, and currently serves on the Federal Advisory Council of the Federal Reserve System. Meyer serves as a director of Continental Airlines, Inc." Yahoo! Finance lists KeyCorp's top three major holders as T. Rowe Price, Fidelity, and Vanguard. At Continental, Mr. Meyer is a member of the "Human Resources Committee" that approves CEO pay.
