Logue will keep many perks in retirement
When Ronald E. Logue retires as State Street Corp.’s chief executive on March 1, 2010, his salary will be cut in half to $500,000 but the executive will keep a number of perks, according to a regulatory filing the company made yesterday.
Logue, 64, will continue to serve as chairman of State Street, and will still get a company car and driver and security guard, as well as a security system at his home, according to the filing. He also will still receive elaborate health screening services generally reserved for executives and personal liability coverage and will be eligible for the life insurance and matching charitable contributions available to other State Street directors.
Logue will not receive additional cash or stock retainers or meeting fees for his service as nonexecutive chairman of the board. He said last Friday that he would retire next year.
Logue is one of the highest paid executives in Massachusetts, earning nearly $29 million in total compensation in 2008. His pension plans are valued at more than $25 million.
Meanwhile, Logue’s successor, Joseph “Jay’’ L. Hooley, 52, will serve as president and chief executive and will receive an increase in his base salary increase - to $1 million from $775,000.
State Street’s board has also trimmed some of the payouts under golden parachutes, or exit-pay agreements, an area that has received enormous scrutiny by Congress and regulators since last year’s federal financial bailouts.
On Oct. 22, the company’s filing says, the executive compensation committee of State Street’s board instituted a maximum payout of $10 million in a change-of-control situation, or takeover of the company, where there previously had been no ceiling. They also said executives would get two times their base salary plus bonus.
Beth Health can be reached at bhealy@globe.com.
