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"The scandal hurt LendingClub’s ability to hold onto some of its key personnel. To retain managers and attract new ones, the company said it will need to boost
by edc117 10y ago
"The scandal hurt LendingClub’s ability to hold onto some of its key personnel. To retain managers and attract new ones, the company said it will need to boost pay packages.
Details of some of those arrangements were disclosed Monday: Acting CEO Scott Sanborn received a grant of restricted stock valued at $5 million and his salary was increased to $500,000. Chief Financial Officer Carrie Dolan received $3.5 million of restricted stock units and her salary was increased to $400,000. Both executives also received $500,000 cash awards that will pay out in a year."
Out of curiosity, how common is this? To me this sounds like grabbing everything you can and heading for the exits before the building burns down, but I'm not familiar with the pay range for CEOs/CFOs in their location. You don't hear anything about others in the company receiving similar packages.
- davidu 10y agoThese stock grants will vest over time. The retention bonuses pay out in a year. A lot can be done to turn the ship around in a year. If they don't, the stock grants (depending on issue price) will be worth a lot less than originally issued, and they'll mainly have a highly taxed bonus. The grants are to prevent opportunity cost of leaving from being considered. If they turn it around, the stock grants will be easily worth it. The company was worth $3b+ weeks ago. Now it's dipped below $1.5b. If they can fix that, that's a small price to pay.
- sseveran 10y agoNon-officers retention doesn't have to be disclosed with the same level of granularity. You might just see stock compensation expenses rise. At a large company retention might not even show up in a meaningful way in compensation expenses.