In public appearances earlier this year, Bill Cooper boasted frequently of the fact that he wasn't receiving a paycheck as chairman and chief executive officer of TCF Financial Corp., as a way of showing that his interests were aligned with shareholders'.
No longer.
On July 31, a year after returning to the helm of the Wayzata-based bank, Cooper signed a new contract that guarantees him a $950,000 salary through December 2014, according to a securities filing Tuesday.
In an interview Wednesday, Cooper, 65, said he didn't ask for a regular paycheck but was offered one by a board of directors that wants to keep him around for another five years. "The board thought that, if they want a five-year commitment from me, that there should be a compensation component," he said.
When asked whether he actually plans to stay as CEO of Minnesota's third-largest bank, by deposits, until he turns 70, Cooper said only, "I would say that's likely."
That may be good news to many longtime TCF shareholders who credit Cooper for the bank's remarkable performance during his 20-year tenure from 1985 to 2005. Yet, it may be disappointing to shorter-term investors who bought TCF shares thinking Cooper was only returning for a brief time to drive up the stock price -- possibly by selling the bank.
Shares of TCF have risen 26 percent to $15.13 since Cooper's return last July -- though, like the rest of the market, the stock has had its ups and downs in that period. Still, shares of many regional bank stocks have plunged and not recovered.
TCF has seen remarkable deposit growth, yet much of its profit is being eaten away by write-offs on problem loans. Earlier this year, TCF slashed its dividend by 80 percent to 5 cents a share from 25 cents -- the bank's first dividend cut in its history.
That dividend cut severely curtailed Cooper's personal income. Cooper is TCF's largest individual shareholder, with 3.3 percent of the company's stock.
Under his new contract, Cooper will receive both a regular salary and the benefits he received under his old contract. Those include stock option grants, performance bonuses and a number of other perks, such as club memberships and personal use of a company aircraft. Last year, Cooper collected about $556,011 in total compensation through such benefits, despite not taking a salary.
Chris Serres • 612-673-4308
