Jeff Peek ran CIT (CIT) into the ground by turning it from a sleepy provider of vendor financing to an agressive player that got into the subprime mess. For that he should be gone by now. But hey! Everyone did it! And besides, he’s kept his company out of bankruptcy (for now), without help of the government which is pretty impressive.
So apparently that’s enough to keep him on board for another year. And another year in which Liz Peek has to bear the TARP wife burden.
NEW YORK (AP) — The board of CIT Group Inc., which nearly collapsed in July, extended the contract of CEO Jeffrey Peek to keep him on for another year.
Commercial lender CIT disclosed the agreement in a regulatory filing made public on Friday. Peek is now signed on until Sept. 2, 2010.
The board noted in a Wednesday letter that Peek’s compensation was now subject to certain federal restrictions for banks and bank holding companies. Also, he will no longer receive certain benefits such as use of the company aircraft, according to the letter.
But the company will pay as much as $85,000 of Peek’s legal and advisory bills for the negotiation of his contract renewal.
In 2008, Peek received compensation valued at $4.2 million, a 61.5 per cent drop from his year-earlier pay, according to an AP analysis.
As recently as last month, the lender said it could still be in danger of filing for bankruptcy protection.
CIT is based in New York. Its shares rose 3 cents, or 2 per cent, to $1.53 in morning trading.