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Department of Excess: Party Like a Banker
If you were getting $4 million for quitting your job, you'd be in the partying mood, too.
When he resigned last week as the vice chairman, executive vice president, board member, and chief marketing and legal strategist of MB Financial Bank, Richard Rieser Jr. invoked a clause in his employment contract entitling him to a "departure party."
MB Financial outlined the party and other perks and payments in a public filing with the Securities and Exchange Commission on October 29.
There are no other specifications as to the good-bye party's budget or whether any musical acts will be slated to perform "Hit the Road Jack."
But there was an interesting reference to 12 annual non-competition payments of $80,000 in addition to the $3,965,000 lump sum payout, the accelerated vesting of more than 11,000 shares of MB stock (which traded for about $31.58 a share today), $25,000 to cover the cost of drafting the employment package in the first place.
And, of course, the party.
When reached by phone, MB Financial Bank president and chief executive Mitchell Feiger declined to comment on Rieser's departure or his party plans.
(No surprise there: In its S.E.C. filing, MB Financial said that Rieser's severance package would reduce fourth quarter earnings by 10 to 11 cents per share, although it promised to save the bank roughly 3 cents per share in 2008.)
According to the filing, Rieser will have full say over the guest list and "arrangements." Lest shareholders worry, Rieser told the Chicago Sun Times that the event would not add up to a big bash featuring "the Backstreet Boys at the Ritz Carlton."
Rieser is leaving following disagreements over the direction of the company. He was formerly president and C.E.O. of First Oak Brook Bancshares, which MB Financial acquired in 2006.
He says he didn't think including the party in the separation agreement would be any big deal and that he wanted it in order to show his gratitude to those who helped build Oak Brook.
As for the heat he's getting for specifying in his separation agreement that he wants a party, Mr. Rieser told the Sun Times simply: "I didn't know any better."
by Andrea Chalupa
