Reading the Notice of Annual Meeting I see his total compensation for 2008 was $9,261,865. Think he is worth it? I own a little over 21,000 shares and plan on attending the annual on April 16. Anybody on this board going ?
Even poor ol' hapless, conniving Jack didn't do this much damage. Reports in the media that DR is vulnerable are prob'ly overstated, but he's not the guy for the times. Live by the FL bubble, die by the bubble. (at least the FL prez knew when to run -- was that Susie?).
I think Dowd is worth it. I voted in favor of board recommendations. Here are my reasons I like Dowd and the board.
1. Region's stock collapse isn't unique among other bank stocks. Dowd gets blamed for something that happened industry-wide. Wachovia went under despite similar Florida exposure but Regions didn't.
2. Regions cut its dividend last July to ramp up savings for charge offs before other well-run companies like USB or WFC did. BBT is now coming under fire for keeping its dividend high and not doing what Regions has been doing since last year.
3. Regions is getting bad loans off of the books far faster than other companies. Dowd stated last quarter that 'No problem ages well' which bodes well for Region's stock when they are done cleaning up the books.
4. Changing leadership in the middle of a crisis is dangerous. If Dowd was that incompentent, Regions would be a WAMU or Merrill Lynch right now. Regions stock price is getting a bad rap because it has been so aggressive in writing off goodwill, in other words taking excess of good medicine.
5. Regions got out of the subprime business and sold it to another company before there were default problems.
6. Management at that level is never cheap but is less than what a baseball player makes. Lou Gerstner and Jack Welch got paid a lot too.
If he is such a wonderful leader, then why not lead by example. No extra compensation till the bank is profitable again. Only thing he has done lately is steal from the 401k matching and stuff it in his pocket. Explain that one!!! I know of other banks where the CEO has taken no bonus till the shareholders are given what they were promised. Oh hell no, Dowd sure as Shi# is not going to do that. And don't hand me that crap about "bonus awarded in stock". That is just as good as cash in my book. Wish we could vote his a$$ out and find someone just as competent without the greedy nature. I bet you could find a replacement living under a bridge somewhere.
RMULVI, you make some good points there, i must agree......
however, we AMSOUTH shareholders really have taken a double hit since we were forced to give up about 6-7 percent of our ASO shares to make the merger with REGIONS happen....
so, the dividend 11% dividend increase we were given in return ,has been erased as well as the amount of shares we own.....
with the level of dividend now, we can no longer even pay the quarterly loan payment which was secured by the previous value of the share price of aso just 3 years ago......THIS HAS BEEN A TRAGEDY FOR MY FAMILY AND WE ARE IN DANGER OF LOSING THE 50,000 SHARES WE OWN...
C.Dowd was CEO of Amsouth.That's where most of my RF holdings came from. I was against the merger in the first place. The bottom line is Amsouth not only paid a dividend EVERY year, even through the dot com era when ASO dropped from $60.00 to $12.00 when the speculation bubble burst,they also INCREASED the div every year. The current mgt and board are loaded with nepotisim and good old boys. The BUCK stops with the CEO. I saw this coming in 2003 and got out of CA in 2005. My mistake was trusting these guys to maintain the dividend and sound banking practices. I am voting no on most, not all , directors up for another term at $65,000 a year for 5 meetings. RF is not alone, I agree, but there are plenty of small regional banks, at least here in TX that are doing just fine because they adhered to good loan underwriting practices and stayed out of FL.
Grossly outrageous compensation should surprise no one when one is his own boss. He is CEO/Chairman. It is a vicious feeding frenzy in the cozy little exclusive CEO/Chairman’s club of new corporate. The greed of these people with their “you scratch my back, I scratch your back” directors are fueling the socialistic fires of America. The excessive compensation starts at one executive controlled corporation and is used as justification at another. This behaviour is destroying America.
This is the first year I bothered to vote my shares. I don't compete with the number you have but I do have a significant chunk of money invested in RF which is now heavily!! depreciated.
Bottom line is I voted against each and every director up for this cycle (and if i recall correctly also voted against the compensation proposal).