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Prepaid Pay Packages

Adam Rust's picture

Posted October 24, 2012

NetSpend: Dan Henry will now get four years of salary if and when he steps down from his CEO position. Henry earns a salary of $410,500.  As well, options for 608,000 shares in NetSpend common stock will immediately vest at a strike price of $3.53. Were that to happen today, that portion of Henry's options would have a value of

$4.1 million. Henry already has about 2.1 million options. Bloomberg estimates that they have a value of about $10 million. When his unexercisable options are added, they have a total value of slightly more than $26 million.

In 2010, NetSpend reported net annual income of $22.7 million.

Steve Streit, a founder of Green Dot, has a similar situation. Streit earns a bit more in salary - $525K - but he has options (excercisable and unexercisable) valued at $25 million.

CEOs at prepaid card issuers are not so well off.

Prior to his retirement, MetaBank CEO J. Tyler Haarr earned about $400,000 per year. Most of his options were out-of-the money. Haarr had options with a strike price of as much as $39.84 (expiration in 2017) which is quite a gap given that today's price is $22.69.

Bancorp Bank CEO Frank Mastrangelo earns a salary of $410,000.