According to the Wall Street Journal, the April departures of CEO Robert Emery and CFO Dan Ryan from San Francisco securities firm Robertson Stephens were the result of a dispute over compensation with the firm’s owners, FleetBoston Financial Corp.
The newspaper reports that, contrary to FleetBoston’s understanding that $840 million would be set aside for the compensation pool for Roberson’s 1,500 employees, Robertson distributed $910 million. As a result, Emery’s 2000 compensation was increased to about 20 percent more than Fleet believed it had agreed on, and $18 million more than Emery’s boss – FleetBoston CEO Terrence Murray – earned. The Journal did not indicate the amount of Ryan’s pay augmentation.
Under FleetBoston’s understanding, the extra 20 percent, or $70 million, was supposed to be set aside as part of a stock distribution arrangement to retain talented employees. Instead, says the Journal, Robertson paid this money out in cash. On April 11, FleetBoston vice chairman Jay Sarles and CFO Eugene McQuade asked Emery and Ryan to resign, saying the two executives “contravened instructions and guidelines concerning compensation,” according to a filing with the National Association of Securities Dealers.
Chip Off the Old Block
Chipmaker National Semiconductor Corp. named Lewis Chew CFO. Chew, who had been acting CFO, succeeds Donald MacLeod, who became COO of the Santa Clara, Calif.-based firm in April.
Western Digital Corp. said CFO Terry Hopp resigned as CFO. Hopp said in a statement that she plans to spend more time with her family and look into other opportunities. Hopp presided over a financial restructuring of the Lake Forest, Calif.-based maker of computer disk drives that produced annual cost savings of more than $300 million and returned the company to profitability. The company said Hopp will assist in recruiting her successor.
In Full Control
Glen Martin was named VP and controller of insurance broker Hannover Life Reassurance Co. of America He was previously assistant VP and controller of the Orlando, Fla.-based subsidiary of international reinsurer Hannover Life Re.