In Pursuit of Other InterestsSome of the...
In Pursuit of Other Interests
Some of the nation’s economic indicators are showing signs of improving, but at least one continues on a bearish trend.
The nation’s “POI” indicator is headed to a record this year. It measures the number of times a major firm has publicly announced that a senior executive resigned to “pursue other interests.”
Pursing other interests--such as another job--has become popular the past few years as companies slashed their executive ranks. Although some executives actually do quit voluntarily for that purpose, the phrase has emerged as the euphemism of choice for publicly describing a firing.
Through May 10, the number of announcements totaled 49, which projects to 134 this year if the pace keeps up. That would be a 22% increase from last year.
POI Economic Indicator
Number of times a major U.S. firm announced that an executive resigned to “pursue other interests.” 1987: 85 ‘88: 96 ‘89: 80 ‘90: 118 ’91 (projected): 134 (based on 49 through 5/10/91
L.A. Law Isn’t Cheap
Court papers filed by First Executive Corp. show that two Los Angeles law firms received nearly $1.2 million in retainers related to the insurance firm’s Chapter 11 bankruptcy filing last week.
Stutman, Treister & Glatt’s retainer is $351,415, while Latham & Watkins gets $830,000. The Latham & Watkins retainer is part of $6.6 million in fees First Executive paid the law firm in the one-year period leading up to last Monday’s filing.
. . .Neither is Banking Talent
One of the best kept secrets in Hollywood’s close-knit world of entertainment lending--and the source of much speculation--has been how much it cost Mercantile National Bank in Century City to persuade superstar lending officer Irene M. Romero to jump ship from City National Bank in August, 1989.
A form 10-K just filed with the Securities and Exchange Commission by the bank’s parent, National Mercantile Bancorp, answers the question for the first time. Romero earned $314,000 in 1990, her first full year there.
By contrast, William T. Hughes, Mercantile National’s chief executive, earned $291,667 in 1990, although he didn’t join the bank until April of last year.
Briefly. . .
Unhealthy development: Hewcal, a Calabasas firm that was once a major franchisee of health-food restaurants, filed for Chapter 11 bankruptcy protection. . .Will they combine names? Austrian banks Oesterreichische Laenderbank and Zentralsparkasse und Kommerzialbank are in merger talks.
