Magazine article American Banker

Bankers Trust Paid Retired CEO $2M for Silence

Magazine article American Banker

Bankers Trust Paid Retired CEO $2M for Silence

Article excerpt

Bankers Trust New York Corp. paid former chief executive Charles Sanford $2 million after he retired in April, in exchange for an agreement not to criticize the company, it disclosed.

Mr. Sanford left amid problems in Bankers Trust's derivatives trading business; corporate clients such as Gibson Greetings Inc. and Procter & Gamble Co. said the bank company misled them about their investments. The need to connect a severance payment to a promise of silence baffled some experts.

"I have to believe that no CEO of any leading money-center bank would leave the organization and start throwing dirt at that organization," said Tony Lord, an executive recruiter at Ward Howell International Inc. "I can't see Charlie Sanford doing that any more than anyone else. I wouldn't have thought it necessary to put a clause like that in the agreement."

But Mr. Lord said the amount of the payment was "not that outrageous relative to some of the packages being given to people at First Interstate and Chase Manhattan at senior levels" after mergers involving those bank companies.

Bankers Trust disclosed the payment in a Securities and Exchange Commission filing, which also included details of a severance package given Timothy Yates. Mr. Yates, who left his post as chief financial officer after Mr. Sanford's announcement, got $330,303.

Both former executives agreed not to "publicly or privately disparage" Bankers Trust, and the company agreed not to disparage Mr. Yates and Mr. Sanford, the filing said. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.