UPDATE 1-State Street gives departing CEO $6 mln cash award
NEW YORK, Nov 24 (Reuters) - State Street Corp (STT.N) said on Tuesday it has granted retiring Chief Executive Ronald Logue a $6 million cash "transition award."
According to a regulatory filing, the amount will vest on Jan. 2, 2011, provided that Logue remains chief executive through March 1, 2010 and non-executive chairman through Jan. 1, 2011, the retirement dates that Boston-based State Street had previously announced.
State Street, one of the world's largest asset custodians and institutional money managers, made the award after a year in which many politicians, investors and governance critics attacked financial services industry pay that they deemed excessive.
Logue was one of eight banking executives to testify before Congress in February, when lawmakers questioned decisions they say helped fuel the financial crisis and U.S. recession.
State Street received $2 billion of taxpayer funds from the Troubled Asset Relief Program, but has repaid the sum.
In the filing, State Street said a board compensation committee approved the $6 million award on Nov. 18 to recognize Logue's "ongoing contributions in leading State Street" and his staying on as chief executive and non-executive chairman.
A State Street spokesman was not immediately available for comment. Chief Operating Officer Joseph "Jay" Hooley will succeed Logue as chief executive.
Logue has been credited as chief executive with reviving the fortunes of State Street, but he was also closely tied to the company's decision to move into riskier assets.
Earlier this month, State Street set aside another $250 million to cover claims by investors who lost money on risky mortgages, after using up more than two-thirds of a $625 million legal reserve set up in 2007.
According to an April proxy filing, Logue had $25.3 million of accumulated pension benefits as of Dec. 31, 2008, and also had $3 million of unvested stock awards. (Reporting by Jonathan Stempel; Editing by Richard Chang) ((jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net))
