Long-Term Incentive Payments to Sidhu Tied to $40 Stock Price
PHILADELPHIA, Feb. 22 /PRNewswire-FirstCall/ -- Sovereign Bancorp, Inc.
(NYSE: SOV) today filed an 8K and related 8K A amendment that discussed 2005
compensation paid to Jay Sidhu, Chairman, CEO and President, and certain other
executive officers of Sovereign. Among the items disclosed were the
following:
* Mr. Sidhu did not receive an increase in salary for the second year in a
row. His salary for 2006 will remain unchanged at $800,000.
* No cash bonus was paid to Mr. Sidhu or any executive officer under
Sovereign's Leaders Incentive Plan because Sovereign did not achieve the
quantitative performance targets set by the Compensation Committee for
2005 for payment of cash bonuses under Sovereign's incentive plans,
notwithstanding the fact that such targets were not met due largely to
external factors outside of the control of Sovereign management.
* In light of Mr. Sidhu's belief in Sovereign, its potential, and Mr.
Sidhu's expectation for stock price appreciation in the near term, the
Compensation Committee determined that the 87,463 non-qualified stock
options and the 9,250 shares of restricted stock awarded to Mr. Sidhu
will vest only if Sovereign's operating/cash earnings per share equal or
exceed $2.84 in a fiscal year or Sovereign's common stock closes above
$40 per share for 20 consecutive trading days during the five year
period from the grant date, and certain other conditions are met.
Sovereign Bancorp, Inc., ("Sovereign") (NYSE: SOV), is the parent company
of Sovereign Bank, a $64 billion financial institution with more than 650
community banking offices, over 1,000 ATMs and approximately 10,000 team
members with principal markets in the Northeast United States. Sovereign
offers a broad array of financial services and products including retail
banking, business and corporate banking, cash management, capital markets,
trust and wealth management and insurance. Sovereign is the 18th largest
banking institution in the United States. For more information on Sovereign
Bank, visit http://www.sovereignbank.com or call 1-877-SOV-BANK.
SOURCE Sovereign Bancorp, Inc.
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Related links:
http://www.sovereignbank.com
CONTACT:
financial contacts, Mark McCollom,
610-208-6426, or mmccollo@sovereignbank.com, or Stacey Weikel,
610-208-6112, or sweikel@sovereignbank.com, or media, Ed Shultz,
610-378-6159, or eshultz1@sovereignbank.com
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