Sterling Financial paying millions to new chairman
Most board members have resigned
The Spokesman-Review August 31, 2010 in Business
Bert Caldwell The Spokesman-Review
New Sterling Financial Corp. Chairman Les Biller was paid $1.5 million to accept the position, and will receive a total $4.5 million by Dec. 31, 2012, unless he resigns.
Biller’s compensation was contained in a Monday filing with the U.S. Securities and Exchange Commission. The filing also disclosed the resignation of all but four members of the Sterling board of directors following completion Thursday of a $730 million recapitalization.
The appointment of Biller, a former vice chairman of Wells Fargo, helped attract private investors who participated in the recapitalization. According to the letter offering Biller the chairman’s job, he invested between $4 million and $7 million of his own money in Sterling.
Biller succeeds William “Ike” Eisenhart, who became chairman when Sterling co-founder Harold Gilkey was forced out last October by regulators.
Eisenhart remains on the board along with other holdovers Ellen Boyer, Michael Reuling and Greg Seibly, Sterling’s chief executive officer.
In addition to Biller, the board added David Coulter, representing Thomas H. Lee Partners, and Scott Jaeckel, representing Warburg Pincus Private Equity X, L.P.
The private equity investment firms each invested $171 million in the Sterling recapitalization.
Creigh Agnew, Katherine Anderson, Ned Barnes, Rodney Barnett, Thomas Fugate and Kermit Houser resigned, as did Marcus Lampros, Robert Larrabee, Dianne Spires, William Wrigglesworth and William Zuppe, Sterling’s other co-founder.
Directors in 2009 received cash compensation of $48,000 to $57,597, plus stock awards.
According to the following article, this bankster retired for a year or two in between Wells Fargo and PG&E. Is this normal practice for the corporate elite?
RESUME: Leslie S. Biller
February 18, 2004
ISSUED BY: Corporate Communications 1-800-743-6397
BANKING VETERAN, LES BILLER, NAMED DIRECTOR OF PG&E CORPORATION AND PACIFIC GAS AND ELECTRIC COMPANY BOARDS OF DIRECTORS
(San Francisco, CA) - PG&E Corporation (NYSE:PCG) today announced the election of Leslie S. Biller to its Board of Directors and the Board of Directors of utility unit Pacific Gas and Electric Company. Biller, 55, served as an Advisory Director on both Boards over the past year.
As a 30-year veteran of the banking industry, Biller most recently served as Vice Chairman and Chief Operating Officer of Wells Fargo & Co. until his retirement in 2002.
Sterling Financial Corporation of Spokane, Wash., Announces Agreements to Raise $730 Million in
Company Release - 08/20/2010 06:30
SPOKANE, Wash.--(BUSINESS WIRE)-- Sterling Financial Corporation (NASDAQ:STSA) (“Sterling”), the bank holding
company of Sterling Savings Bank, today announced agreements to raise a total of $730 million in new capital from
institutional, private equity and other accredited investors. The transaction is expected to close on or about August 26,
Thomas H. Lee Partners, L.P. (“THL”) and Warburg Pincus Private Equity X, L.P. (“WP”) have amended their agreements
to increase their investments in Sterling. Under the terms of the amendments, it is anticipated that THL and WP would
each purchase 68,366,000 shares of common stock and 1,709,150 shares of Series B preferred stock, for an aggregate
purchase price of approximately $171 million each. THL and WP also would receive warrants. Upon closing, THL and WP
would each own an aggregate of 22.6 percent of Sterling’s pro forma common stock on an as-converted basis and after
giving effect to the exercise of warrants.
Sterling has also entered into agreements with approximately 30 accredited investors for private placement of
155,268,000 shares of common stock and 3,881,700 shares of Series D preferred stock in exchange for aggregate gross
proceeds of approximately $388 million in cash. In addition, as previously announced, the U.S. Treasury will convert its
$303 million investment of preferred stock in Sterling into common shares. In aggregate, the transactions with THL, WP,
other accredited investors and U.S. Treasury will result in the issuance of 4.2 billion shares of Sterling common stock,
assuming the conversion of preferred stock and the exercise of warrants.
Sterling President and Chief Executive Officer Greg Seibly said, “This commitment of $730 million in new capital
represents a major milestone in our recovery plan, and one that will substantially strengthen our capital ratios and provide
a solid base for rebuilding long-term franchise value. The focused energies of many at Sterling have helped us to
preserve and grow our core banking franchise in support of our customers and communities across the Pacific Northwest.
Today’s announcement reflects the investment community’s recognition of this value.”
Following the closing of the transaction and contingent on regulatory approval, Les Biller, former vice chairman and chief
operating officer of Wells Fargo and Company, would serve as chairman of Sterling’s board of directors, and WP Managing Director David A. Coulter and THL Managing Director Scott Jaeckel would join Sterling’s board of directors.
Any connection with Daddy Warbucks is purely co-incidental.