Central Pacific
declines to retain
exec in merger

A CB Bancshares Inc. executive vice president who was promised a top position with Central Pacific Financial Corp. after the banks' expected merger has been told by Central Pacific that his services no longer will be needed.

Warren Kunimoto: Has not been offered a job following the merger of City Bank and Central Pacific

Warren Kunimoto, a 20-year veteran with City Bank's parent and the International Savings & Loan thrift it acquired in 1994, was informed Friday that he will not be offered the position of senior vice president of information technology at the newly merged bank.

Kunimoto, 52, had been involved in the merger talks with Central Pacific Bank's parent and had reached a job arrangement for an initial term of three years with Central Pacific that would have paid him an annual base salary of $120,000, plus a minimum annual target bonus of $36,000.

Central Pacific spokeswoman Ann Takiguchi said it was the bank's policy not to comment on personnel matters. However, she noted that the bank stated in December that its no-involuntary-layoff commitment would not apply to a small number of senior managers who have change-in-control agreements that deal with a switch in ownership.

"Mr. Kunimoto has a change-in-control agreement and therefore is not subject to the company's no-involuntary-layoff commitment," she said. The company is sticking with a plan to not lay off workers involuntarily as a result of the merger, she added.

Kunimoto could not be reached for comment.

A meeting to announce the shareholders vote on the merger is scheduled for Sept. 13, with the marriage of the two holding companies expected two days later. Kunimoto's last day would coincide with the changeover.

Kunimoto was to receive about $672,000 from his change-in-control severance package and a retirement benefit of $12,000 a month, payable for 20 years when he turned 65, according to a recent Central Pacific filing with the Securities and Exchange Commission. He also was to receive payment to cover related excise tax liabilities. The status of those payments is now unclear in light of Central Pacific's decision not to retain him.

In another development, Central Pacific announced yesterday that its board has elected Chief Financial Officer Neal Kanda as a director to replace Alice Guild, who retired in July. Kanda is due to become president of Central Pacific Bank following the merger.