Departing Central Pacific president to get $2.2M

Neal Kanda is retiring nearly six months before his employment contract expires

Central Pacific Financial Corp. President Neal Kanda, who recently agreed to retire from the bank, will receive more than $2.2 million in severance, additional compensation and benefits, according to a recent filing with the Securities and Exchange Commission.

The 57-year-old Kanda, whose last day will be March 31, will not be allowed under his employment agreement to work for a competing institution for 2 1/2 years. In addition, as part of his retirement settlement, he agreed not to seek any employment for six months after March 31, and to seek Central Pacific's approval for any job he wants to accept during the following six months. Kanda has been at Central Pacific for 16 1/2 years.

Kanda agreed to leave the bank last month after being told his other position of chief operating officer was being phased out and his two-year contract wasn't being renewed. He is retiring 5 1/2 months before his contract expires.

Chief Executive Clint Arnoldus, the chairman and president of Central Pacific before it bought City Bank's parent in September 2004, will assume the role of president again.

Kanda, whose current annual salary is $299,300, will have his memberships at the Waialae Country Club and Mid Pacific Country Club paid for by the bank through the end of his two-year employment contract that ends on Sept. 15, 2006. The membership dues include $46,752.50 for monthly dues and a one-time initiation fee at Waialae and $15,568.75 for monthly dues, locker fee, food and beverages at Mid Pacific. He also will receive $3,850 for an auto allowance and $687.50 for a cell-phone allowance that run through the last 5 1/2 months of his contract.

Overall, his $2.2 million retirement agreement includes $1.4 million in severance, consisting of three additional years of his current salary, $448,950 for a three-year target bonus, $37,412.50 for a three-month, pro-rated 2006 target bonus and $29,930 in lieu of profit sharing.

Also, Kanda's package includes $310,995 in cash compensation to cover wages through Sept. 15, the health club memberships, unused vacation, auto allowance and cell-phone allowance for the remainder of his two-year contract; $175,906 under a long-term incentive plan benefit; $293,182 for a supplemental retirement benefit; $8,008 in health benefits and $26,000 in outplacement services.