Dive Brief:

• Incoming New York Community Bank CEO Joseph Otting will receive an annual base salary of $1.25 million, the bank disclosed in a Securities and Exchange Commission filing Friday.
• Otting will also be eligible for an annual cash bonus with a target value of $2.25 million, but that amount could balloon to $4.5 million, according to the filing.
• Alessandro DiNello, the bank’s executive chair, will receive a base salary of $500,000 per month — though that will be for less than two months. DiNello was given that title Feb. 6 and will return to his previous role as non-executive chairman April 1, when Otting becomes CEO. DiNello will receive $450,000 per year as non-executive chair, NYCB disclosed Friday.

Dive Insight:

As often happens in the banking sphere, Otting and DiNello both stand to make considerably more through stock options than with salary and bonus.

Otting is receiving a one-time, 10-year stock option award covering 15 million shares at $2 per share, NYCB said Friday. The options will vest over three years in equal quarterly installments, unless there’s a change in control of the bank. In that case, they’d vest immediately, the bank said.

DiNello, meanwhile, is receiving a one-time stock option grant of 4 million shares at $3.46 per share, NYCB said. He’ll also get a one-time restricted stock award covering 1,690,000 shares, which — on the settlement date — will turn into the value of 1,690,000 shares at the time, or the number of shares that equals $5,840,000, whichever is less.

Additionally, DiNello will serve as a consultant to the bank from April 1 through the remainder of the year, with base compensation of $450,000 per year and eligibility for an annual bonus.

Half of DiNello’s executive chairman compensation will be paid in cash, with the other half coming in restricted stock units, which will vest in a year.

Otting, who led the Office of the Comptroller of the Currency during the Trump administration, was named NYCB’s next CEO as part of a deal in which investors led by Treasury Secretary Steven Mnuchin’s firm, Liberty Strategic Capital, infused the struggling lender with $1.05 billion.

NYCB’s recent woes began Jan. 31, when the bank announced a surprise $252 million fourth-quarter loss related to commercial real estate exposure. The bank’s stock price lost 84% of its value between then and the Mnuchin rescue Wednesday. Since the deal was announced, value per share has doubled. NYCB named DiNello executive chair Feb. 6, then CEO roughly three weeks later, when his predecessor, Thomas Cangemi, resigned.

Cangemi received $6.28 million in compensation in 2022, according to Reuters.