According to a regulatory filing, CIT paid former chief executive John Thain less than his 2015 target bonus because he did not successfully integrate OneWest, the California bank CIT acquired last year for $3.4 billion, into the company.

Thain’s short-term incentive target was $1.75 million (down from $5.0 million in 2014 due to a shift in target incentive opportunity from short-term to long-term), and his 2015 short-term incentive award was $1.225 million, representing 70% of target.

In determining Thain’s award, in addition to the company’s financial and operating performance, the committee noted the following 2015 key accomplishments:

Quantitative Criteria (50%)

  • Performance results were between mostly meets and meets for three out of four pre-established goals: pre-tax income, funded new business volume and CIT Bank assets, resulting in below target payout for these goals.
  • While the goal for provision for credit losses was exceeded, payout was capped at 100% (as in 2014).
  • Overall payout for this category was approximately 43%.

    • Qualitative Criteria (50%)

  • Risk / Regulatory / Compliance (10%): Launched new, company-wide mandatory compliance program; grew portfolio assets while maintaining strong credit including corporate credit upgrade Resulted in payout of 10% for this category.
  • Strategic Vision (30%): Partially met goals, reflecting the assessment by the Board that the management team and the cultures of the two organizations were not successfully integrated in a timely manner; and the limited development of significant new products. Resulted in a payout of 7% for this category.
  • Talent Management (10%): Fostered the ongoing development and expansion of management and leadership programs, as well as new business education and acumen programs; continued progress on diversity hiring and promotions across the company, resulting in a payout of 10% for this category.
  • Overall payout for this category was approximately 27%.