TARP-recipient West Bancorporation, Inc. has hired a new chief executive
after an eight-month search.
West Bancorporation, parent company of Iowa-based West Bank, appointed
David D. Nelson, former president of Southeast Minnesota business banking for
Wells Fargo Bank Minnesota.
SEC filings show that Nelson's salary will be 10 percent higher than
that of his predecessor, Thomas E. Stanberry, who resigned just before the
company announced a loss of $5.3 million for the second quarter of 2009.
West Bank reported a net loss of $16.9 million last year, compared with a profit of $7.6 million in 2008. The company had earnings of $2.2 million for the fourth quarter of last year, but noted that its nonperforming assets rose $1.2 million to $52.9 million and that its provision for loan losses as a percentage of total loans also was up from the same period in 2008.
West Bancorporation got $36 million through the Troubled Asset Relief
Program on the final day of 2008.
According to the company's SEC filing on Nelson's appointment, the new
CEO will receive a cash salary of $275,000 with a potential yearly incentive
bonus of as much as 50 percent of that amount. Performance bonuses, if any,
will be paid in long-term restricted stock.
Nelso also received a $125,000 restricted stock grant as a signing
bonus, and will get the same perquisites as other senior executives.
Thomas E. Stanberry, the former chairman and chief executive, resigned
in July 2009, in a move that the company described in its SEC filings as
involuntary. Stanberry had a base salary of $250,000, with additional cash and
stock incentives.
Because of TARP restrictions, Mr. Stanberry did not receive severance
package.
Jack Wahlig, West Bancorporation's current chairman, noted that the selection process was a thorough one. He praised Nelson for his more than 25 years of experience and his strong background in credit administration. He also pointed to Nelson's ability to build relationships as a deciding factor in his hiring.
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