Embattled lender NYCB announces incoming CEO Otting’s base salary

By Thomson Reuters Mar 8, 2024 | 5:21 PM

(Reuters) – New York Community Bancorp said on Friday incoming CEO Joseph Otting will receive an annual base salary of $1.25 million and as of March 6 received a one-time option to acquire 15 million shares of the company’s common stock.

The bank named Otting, a former U.S. Comptroller of the Currency in President Donald Trump’s administration, as its new CEO replacing Alessandro DiNello, effective April 1.

DiNello, the executive chairman of the bank’s board, was named to the additional roles of president and CEO on Feb. 29 succeeding Thomas Cangemi, who resigned from those roles on Feb. 23.

NYCB has been under pressure since it posted a surprise fourth-quarter loss on Jan. 31, weighed down by higher provisions tied to its exposure to the beleaguered commercial real estate (CRE) sector.

On Wednesday, the lender raised $1 billion from investors including former U.S. Treasury Secretary Steven Mnuchin’s Liberty Strategic Capital and had named Otting as CEO.

Along with the base salary, Otting would also be eligible to receive an annual cash bonus with a target amount of $2.25 million and a maximum of $4.50 million.

NYCB’s former CEO Cangemi’s total compensation in 2022 was $6.28 million.

(Reporting by Ananya Mariam Rajesh in Bengaluru, Additional reporting by Jaiveer Shekhawat; Editing by Krishna Chandra Eluri)