Another Columbus institution bans bonuses...Dr. Leone, once again, you were ahead of the ball game!
From John Curry, February 3, 2009
Maybe the four STRS Board members who didn't vote against bonuses should read this article! The unemployment office is full of professional investors looking for a job, isn't it? John
Huntington to cut 500 jobs, freeze pay
Bancshares announced it will cut 500 jobs as part of a $100 million cost-cutting measure.
The job cuts will take place in Ohio, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia through March 1, but the Columbus-based bank has not yet said how many of the job losses would be in the Columbus area.
Huntington has about 11,000 employees.
The bank also announced it will eliminate all 2008 bonuses, maintain salaries at last year's level and suspend the company match for its 401(k) plan.
"We believe these steps address current market challenges, while also aligning management and associate compensation and shareholder interest," said Stephen Steinour, Huntington's new chief executive, in a statement.
Huntington recently announced fourth-quarter losses of $417.3 million, due in large part to its exposure to subprime mortgages through its involvement with Franklin Management Corp.
On Monday, Huntington stock closed at $2.02, a 29.9 percent drop and the lowest it has been since 1988.
"Our regulatory capital ratios are at least $1.9 billion above the 'well capitalized' minimum threshold," Steinour said. "Our liquidity is strong. In the fourth quarter we reduced our Franklin relationship exposure to current realizable values."
The initial total of $1.5 billion in problem mortgages from Franklin was down to $650.2 million on Dec. 31.
posted by Kathie Bracy at 10:31 PM
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