New York Community Bancorp announced on Friday that incoming CEO Joseph Otting will receive an annual base salary of $1.25 million. Additionally, as of March 6, Otting was granted a one-time option to acquire 15 million shares of the company’s common stock.
Otting, a former U.S. Comptroller of the Currency in President Donald Trump’s administration, will succeed Alessandro DiNello as CEO, effective April 1. DiNello, currently the executive chairman of the bank’s board, took on the additional roles of president and CEO on Feb. 29, following the resignation of Thomas Cangemi from those positions on Feb. 23.
The announcement comes amid pressure on NYCB following a surprise fourth-quarter loss on Jan. 31, attributed to higher provisions related to its exposure to the commercial real estate (CRE) sector. In a move to address its financial position, the lender recently raised $1 billion from investors, including Liberty Strategic Capital led by former U.S. Treasury Secretary Steven Mnuchin, and appointed Otting as CEO.
In addition to his base salary, Otting will be eligible for an annual cash bonus with a target amount of $2.25 million and a maximum of $4.50 million.
The total compensation for NYCB’s former CEO, Cangemi, amounted to $6.28 million in 2022.