FDIC Pays Out $860,000 in Bonuses

American Banker, 2/21/03 -- The Federal Deposit Insurance Corp. gave a combined $860,000 of bonuses to 39% of its executives last year, according to figures obtained Thursday by American Banker.

The bonuses were part of the "pay at risk" program announced a year ago by Chairman Don Powell to mimic private-sector incentives.

"If you meet corporate and individual objectives, you will be rewarded; and if you don't meet corporate individual objectives, you won't," Mr. Powell said at the time.

Though each of the FDIC's 169 executives received a 3.2% raise, only 66 got bonuses. The bonuses, which ranged from 5% to 12% of base pay, were determined by how well employees met individual goals and how much they contributed to meeting corporate objectives.

Nominations were made by office or division directors and an executive review board. An FDIC spokesman said that the program is expected to be refined this year.

John F. Bovenzi, the chief operating officer and a deputy to the chairman, received the biggest bonus, $22,356. Michael Zamorski, the director of the division of supervision and consumer protection, was close behind, with $22,334.

The top five recipients also included Douglas H. Jones, the senior deputy general counsel, with $22,179, and Erica Cooper, a deputy general counsel, with $19,952. They received more than their boss, General Counsel William F. Kroener, whose bonus was $14,862.

All of the five senior executives who report directly to Mr. Powell received bonuses. In addition to Mr. Bovenzi, John Brennan, a deputy to the chairman, got $15,912, and Steve App, the chief financial officer who joined the FDIC halfway though the year, got $9,543. Jodey Arrington, Mr. Powell's chief of staff, got $14,360, and C.K. Lee, a special adviser to the chairman, got $13,347.

The bonuses came at an awkward time for the agency. As it informed executives of their awards last month, it also announced that it was eliminating approximately 140 positions. But a spokesman said those announcements were not contradictory.

The job cuts "eliminate surplus positions, positions where there isn't enough work to continue justifying the slots," he said. "The bonus program is to set up an incentive for executives to work toward meeting ambitious corporate and divisional or office objectives. Both are fair results from careful deliberation, but no tie links the two."

The last time the FDIC awarded bonuses was in 1994.

Half of the employees in the federal government's "senior executive service" received bonuses in 2001; the average bonus was nearly $8,000 each. The Federal Reserve Board pays out executive bonuses, while the Office of the Comptroller of the Currency and the Office of Thrift Supervision pay out "performance awards" of relatively low dollar value, a common practice throughout most federal agencies.

The bonuses could have a volatile effect on a voluntary cap on total compensation adopted by the FDIC, the OTS, and the OCC. The three agencies had limited total compensation to the salary of the Vice President of the United States, which this year is $198,600, but the FDIC said Thursday that it had switched to the policy of the Federal Reserve Board, which allows total compensation of as much as $215,000.

Comptroller John D. Hawke Jr. said Thursday that he would have paid his employees more but wanted to stick to the cap.

"Our senior people are unmatched anywhere in government," Mr. Hawke said. "If anyone deserved to have bonuses, it is them. But as a matter of policy, we have decided to adhere to the cap."

Listed below is the list of the executives that received a bonus.

Division or Office

Name

Title

Gross

Bonus

Amount ($)

LEGAL

Aboussie,Richard T

Associate General Counsel

16,951

LEGAL

Amberg,Ruth R

SENIOR COUNSEL

13,862

DOF

Anderson,Steven P

DEPUTY DIRECTOR

10,911

CFO

App, Steven O

DEPUTY TO THE CHAIRMAN CFO

9,543

Chair Off

Arrington,Jodey C.

CHIEF OF STAFF

14,360

DRR

Basel,Andrew F

MANAGER, RESOLUTIONS AND RECEI

6,188

OPA

Battey,James Phillip

DIRECTOR

7,774

DSC

Beshara,Alice E

DEPUTY REGIONAL DIRECTOR (COMP

7,114

DOA

Bjorklund,Glen Victor

DEP DIR

19,237

OIG

Black, Patricia M.

DEPUTY INSPECTOR GENERAL

10,000

DRR

Blincow,Kenneth N

MANAGER, RESOLUTIONS AND RECEI

6,106

COO

Bovenzi,John F

DEPUTY TO CHAIRMAN & COO

22,356

LEGAL

Bracken,L Robert

DEPUTY REGIONAL COUNSEL

8,451

Chair Off

Brennan,John Merritt

DEPUTY TO THE CHAIRMAN

15,912

DIRM

Brenneman,Mark A

SUPV IT SPECIALIST

10,181

DRR

Brown,Susan R

ASSISTANT DIRECTOR, ACCOUNTING

9,170

DSC

Browne,Miguel Damian

ASSOCIATE DIRECTOR (INTERNATIO

6,974

DIR

Carns Jr,Frederick S

DEPUTY DIRECTOR, FINANCIAL RIS

13,010

DSC

Carter,John F

REGIONAL DIRECTOR

15,405

LEGAL

Cintron,Ivan

DEPUTY REGIONAL COUNSEL

10,098

LEGAL

Cooper,Erica F

DEPUTY GENERAL COUNSEL

19,952

LEGAL

Dill III,Alonzo T

SENIOR COUNSEL

10,182

LEGAL

Divis,Timothy E

REGIONAL COUNSEL

7,876

DSC

Eberley,Doreen Renee

DEPUTY REGIONAL DIRECTOR (RISK

7,615

DSC

French,George E

DEPUTY DIRECTOR (POLICY AND EX

13,917

DSC

Fritts,Steven D

ASSOCIATE DIRECTOR (RISK MANAG

11,315

DSC

Gambrell,Donna J

DEPUTY DIRECTOR (COMPLIANCE AN

17,496

DRR

Glassman,Mitchell L

DIRECTOR

18,522

DIRM

Goldberg,Ned David

ASSISTANT DIRECTOR, INFORMATIO

8,549

DSC

Hall,Nancy E

REGIONAL DIRECTOR

14,601

DRR

Held,Herbert J

ASSISTANT DIRECTOR, INSTITUTIO

10,419

DSC

Hernandez,Nelson

CHIEF, COMMUNITY AFFAIRS BRANC

6,125

OIG

Holland, Samuel M

ASSISTANT INSPECTOR GENERAL

15,000

DOF

Hughes,Karen J

DEPUTY DIRECTOR

15,765

DRR

Ivie,Stanley R

DEPUTY DIRECTOR

13,191

LEGAL

Jones,Douglas H

SR DEPUTY GENERAL COUNSEL

22,179

LEGAL

Kaplan,Alan J

SENIOR COUNSEL

11,224

DOA

Kea,Arleas Upton

DIRECTOR

20,007

DOA

Kmetz,William A

ASSISTANT DIRECTOR

8,808

LEGAL

Kroener III,William F

GENERAL COUNSEL

14,862

DSC

Lane,John M

DEPUTY DIRECTOR (RISK MANAGMEN

19,298

LEGAL

Lawrence,James R

SENIOR COUNSEL

16,444

Chair Off

Lee,Clarence K

SPECIAL ADVISOR TO THE CHAIRMA

13,437

LEGAL

Mckinley,Donald B

REGIONAL COUNSEL

17,499

DIR

Miller,Rae Ann

ASSOCIATE DIRECTOR, REGIONAL O

10,336

DIR

Murton,Arthur J

DIRECTOR

15,916

DOF

Nairn,Joseph M

ASSISTANT DIRECTOR, CORPORATE

7,845

LEGAL

Osterman Jr.,Richard J

SENIOR COUNSEL

16,836

DRR

Ostermiller,William R

ASSISTANT DIRECTOR, RECEIVERSH

6,625

DRR

Patelunas,Gail L

DEPUTY DIRECTOR

10,961

DOF

Peddicord III,Thomas E

ASSOCIATE DIRECTOR

13,654

DSC

Polakoff,Scott M

REGIONAL DIRECTOR

14,797

DOA

Rubino,Michael John

ASSOCIATE DIRECTOR

16,340

LEGAL

Schecker,David A

REGIONAL COUNSEL

8,424

DSC

Schmidt,Mark S

REGIONAL DIRECTOR

19,071

DOF

Selby,Frederick Scott

DIRECTOR

13,447

LEGAL

Shea,Pamela

ASSISTANT GENERAL COUNSEL

9,323

OIG

Simmons, Rex A

ASSISTANT INSPECTOR GENERAL

7,500

DOA

Smith,Carolyn J

ASSISTANT DIRECTOR

13,766

LEGAL

Smith,Jack D

DEPUTY GENERAL COUNSEL

13,504

DSC

Spoth,Christopher J

REGIONAL DIRECTOR

14,441

DSC

Stark,William Albert

ASSOCIATE DIRECTOR (CAPITAL MA

11,674

DSC

Storch,Robert F

CHIEF, ACCOUNTING SECTION

11,099

DIR

Sweeney,Maureen E

DEPUTY DIRECTOR, RISK ANALYSIS

12,869

LEGAL

Thomas,John V

ASSISTANT GENERAL COUNSEL

15,094

DSC

Thompson,Sandra L

DEPUTY DIRECTOR (SPECIAL PROJE

19,810

DIRM

Velasquez,Sandra A

ASSISTANT DIRECTOR

8,274

DRR

Wigand,James R

DEPUTY DIRECTOR

16,303

DSC

Zamorski,Michael J

DIRECTOR

22,334

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