By Becky Yerak |
Ralph Mandell, the PrivateBancorp Inc. co-founder who transformed the
lender in 2007 by hiring dozens of former LaSalle Bank executives,
plans to retire as chairman of the Chicago-based bank holding company
in 2011, when his term as director expires, according to a proxy filed
Thursday with the Securities and Exchange Commission.
Mandell, 69, had hired LaSalle’s former top commercial banker, Larry
Richman, after that institution was acquired by Bank of America.
Mandell put Richman into the chief executive post at PrivateBancorp,
which also hired dozens of Richman’s lieutenants from LaSalle.
PrivateBancorp has grown rapidly since then but has suffered from loan-quality issues. Mandell owns 1.5 percent of the company’s stock.
Mandell had served as chairman and CEO of the company and its PrivateBank and Trust Co. unit since 1994 and served in that capacity until in November 2007 the reins were handed to Richman.
Before starting PrivateBancorp, Mandell was chief operating officer of First United Financial Services, Inc., a publicly traded community banking group, from 1985 to 1989, and served as its president from 1988 to 1989.
After he retires, Mandell will assume the title of founder and chairman emeritus. In 2009, he was paid base compensation of $760,000. For 2010 and through the 2011 annual meeting of stockholders, his base salary is $710,000, and he’ll not participate in bonus or incentive plans.
After his retirement as chairman at the 2011 annual meeting, he’ll no longer receive a base salary from the company. If he continues to serve as a director, he’ll be entitled to the same compensation for his service as a director as do other non-executive directors, the proxy said.
A new chairman for PrivateBancorp hasn’t been announced.
In February 2009, the board named a lead independent director who’d be responsible for leading independent director discussions, providing counsel to the CEO, serving in an emergency role should board leadership be required, and presiding at all meetings of the board at which the chairman is not present.
That lead director is James Guyette, 64. Guyette is CEO of Rolls-Royce North America Inc., a subsidiary of Rolls-Royce plc, where he serves as a director.
In anticipation of Mandell’s retirement and to promote a smooth leadership transition, in February 2010 the Board further amended its by-laws to expand Guyette’s role of lead director.
Also on the board is Norman Bobins, 67. Bobins, who joined the board in 2008, is Richman’s former boss at LaSalle.
Here’s a link to the proxy: http://www.sec.gov/Archives/edgar/data/889936/000095012310031511/c98647pre14a.htm