Founder Herbert Took 23.1 Billion in 2021 Alone
FRB Responds, "Just Good Performance"
The family of the owner of First Republic Bank (FRB) in the United States, which is engulfed in bankruptcy rumors, has reportedly received millions of dollars in salaries over several years, according to the Wall Street Journal (WSJ) on the 24th (local time).
According to FRB disclosures, in 2021, when founder James Herbert served as CEO, the bank paid him $17.8 million (approximately 23.14 billion KRW) in compensation. FRB is a small-to-medium bank with assets totaling $212 billion, but it paid about twice the salary of CEOs at similarly sized banks such as BNY Mellon (assets of $324 billion), whose CEO earned $9.3 million (1.209 billion KRW), and Silicon Valley Bank (SVB, assets of $209 billion), whose CEO earned $9.9 million (1.287 billion KRW).
Additionally, Capra Ibex, a consulting firm owned by Herbert’s brother-in-law James Healy, was responsible for advisory services on investment portfolios, risk management, interest rate and economic forecasts, earning $2.3 million (approximately 299 million KRW) in 2021 alone. Herbert’s son also received $3.5 million (approximately 455 million KRW) for overseeing the loan department at FRB.
FRB explained the large compensation paid to the family by stating, "Our bank has internal guidelines related to transactions with family members, and we disclose all such details annually." Regarding Herbert’s 2021 salary, they further clarified, "FRB’s performance from 2016 to 2021 outperformed the Standard & Poor’s (S&P) 500 index in the same industry, reflecting strong shareholder returns."
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