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Sovereign Bancorp Joseph P. Campanelli’s repulsive 8.4M parachute!

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 2, 2008

That’s repulsive. Getting 8.4 million dollars for running an underperforming bank? How can I get that sweetheart deal? And people wonder why there’s no confidence in Wall Street? Eventually it’ll poll lower than Congress, if that’s possible. Sovereign Bancorp Inc. CEO Joseph P. Campanelli stands to pocket at least $8.4 million from a golden parachute that rewards him with two years’ salary, bonus pay and an enhanced retirement plan, U.S. regulatory filings show. He also owned, when the company’s proxy was filed, 752,076 shares of Sovereign stock. About half of that stock is tied to options, however, and most likely are worthless, given Sovereign’s share price plunge in the last year. As CEO, Campanelli’s base salary in 2007 was $826,923, plus he received a $1.25 million stay-on bonus, which was not tied to performance.

Rick Green of courant says, “Don’t worry, welfare for bankers won’t end” Just as everyone is telling us it’s the right thing to do to bail out Wall Street, comes news that the ousted CEO of Sovereign Bank is walking out the door this week pushing a wheelbarrow full of money.

Joseph P. Campanelli Profile:

Joseph P. Campanelli, Joe has been President and Chief Executive Officer of Sovereign Bancorp Inc. since October 2006 and also its Subsidiary Sovereign Bank since January 17, 2007. Mr. Campanelli joined Sovereign Bank in September of 1997. Mr. Campanelli served as Chief Executive Officer of Sovereign Bank New England, the subsidiary of Sovereign Bancorp Inc. since January 2005 and its President and Chief Operating Officer since December 1999. He served as Chief Administrative … Officer of Sovereign Bancorp Inc. Mr. Campanelli spent more than 20 years serving in a variety of executive positions with both Fleet and Shawmut Bank. He also served as President and Chief Operating Officer of Sovereign Banks Commercial and Business Banking Division in May 2001. Mr. Campanelli started his banking career in Hartford, Connecticut in 1979. In 1983, he led Hartford’s interstate banking activities, opening offices in Boston and Rhode Island. Mr. Campanelli joined Sovereign as Executive Vice President in September 1997 through Sovereigns acquisition of he Fleet Automotive Finance Division and assumed the role of Managing Director of Sovereigns Automotive Finance Division and Asset Based Lending Group. He has been Chairman and Trustee of Tufts-New England Medical Center Inc. since August 24, 2005. Mr. Campanelli served as Vice Chairman of Sovereign Bancorp Inc.

He began his banking career in Hartford, Connecticut in 1979. Recognized as an innovative leader, Mr. Campanelli has been instrumental in establishing key economic development programs with a variety of agencies and industry groups. As a member of the Massachusetts Job Growth Task Force, he introduced two programs in conjunction with State Treasurer Timothy Cahill designed to encourage job growth and home ownership in the Commonwealth: The Sovereign Bank Job Foundation Loan Program for small businesses and the Massachusetts Educator Home Loan Program. Mr. Campanelli is Chairman of the Massachusetts Business Roundtable, a non-profit, nonpartisan, statewide public affairs organization of CEOs representing Massachusetts’ leading industry and business enterprises. Mr. Campanelli also serves as Chairman of the board of trustees for Tufts Medical Center. In addition, he serves as a director and plays a leadership role with the United Ways of New England. He is also a director of the Boys and Girls Club of Boston and serves on the board of trustees at Suffield Academy in Suffield, Connecticut and Babson College in Wellesley, Massachusetts. Mr. Campanelli was appointed to the Board, as a Class III director, effective on January 16, 2007.

since September 2002. He has been Executive Director of Sovereign Bancorp Inc. and Sovereign Bank since January 17, 2007. He serves as director of the Boys and Girls Club of Boston, president of the Boston Minuteman Council-Boy Scouts of America, and serves on the board of trustees at Suffield Academy in Suffield, Connecticut. Mr. Campanelli has been a member of the Tufts-NEMC Board of Trustees for 3 1/2 years, and served as Finance Committee Chair since January 2004. He is a member of the Massachusetts Job Growth Task Force, he introduced two programs in conjunction with State Treasurer Timothy Cahill designed to encourage job growth and home ownership in the Commonwealth: The Sovereign Bank Job Foundation Loan Program for small businesses and the Massachusetts Educator Home Loan Program. He is a member of the community, Campanelli is chairman of the Massachusetts Business Roundtable, a non-profit, nonpartisan, statewide public affairs organization of chief executive officers representing Massachusetts leading industry and business enterprises. Mr. Campanelli holds a Bachelor of Science in Business Administration with high distinction and graduate of Babson College. He resides with his wife Carolyn, and three children in Wellesley, Massachusetts.

Mr. Campanelli is President and Chief Executive Officer of Sovereign. Mr. Campanelli joined Sovereign Bank in 1997 when it acquired Fleet Financial Group’s indirect auto lending business, which he had headed. He became President and Chief Operating Officer of our New England Division in 1999 when Sovereign acquired 268 branches that Fleet had to divest after its merger with Bank Boston Corp. Mr. Campanelli played an active role in the branches’ acquisition and integration, which at the time was the largest branch divestiture in U.S. history. Prior to establishing our presence in New England, Mr. Campanelli spent nearly 20 years serving in a variety of executive positions with both Fleet and Shawmut Bank.

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This clown was "elected" President and CEO of Flagstar Bancorp, announced today (10/1/09). Didn't the Board of Directors that elected him know anything about his past? How do people like this keep getting jobs? No wonder our country is in such sad financial shape. I lost my job early this year because of people like this. I'm now earning half of what I averaged the past 15 years while people like him keep getting more and more. I'm just an average working stiff, but I and others like me suffer because of these types of people and the reckless decisions they make. Then they get rewarded for it with golden parachutes and another job! A revolution is coming...average Joes like me are not going to take this sort of stuff too much longer...where's the "change", Mr. Obama??? Looks like the same old story, same old song and dance to me.

Nation

We have to accept the fact that some poeple will have larger salaries then others. I understand your frustration but it is what it is. That's what makes us a "free" country and not a communist one. It's the beauty of being rewarded. If we really cared so much about the good of every company then we should stop incentive programs for employees, customers, free giveaways, etc.