The Treasury Department is reviewing concerns relating to the $18 million compensation package received by Mack Whittle, the former CEO of South Financial bank, reports the Greenville News.
As we noted yesterday, Whittle moved up the date of his retirement, possibly so that his pay wouldn’t be subject to restrictions on companies participating in the bailout program. Last week, South Financial received $347 million as part of that program.
A spokesman with the office of S.C. Rep. Bob Inglis told the Greenville News: “[Treasury is] examining the issue.”
Inglis and South Carolina governor Mark Sanford — who Whittle had in recent years opposed politically — had asked Treasury to probe the matter. Both are Republicans.
In a letter to Treasury Secretary Henry Paulson, Inglis urged Paulson to close loopholes to prevent executives from gaming the system in the way that Whittle may have done.
As we reported yesterday, Whittle served on John McCain’s South Carolina finance team, and raised money for George Bush in 2000.
Whittle, who has said he’ll remain on South Financial’s board, is also being sued by a company shareholder seeking to block the payment.
Late Update: In fact, the news that Treasury is looking into the Whittle matter was first reported yesterday afternoon by TheStreet.com. The financial news site was also first to raise questions about the timing of Whittle’s departure back in October.