How much did top executives of Washington Trust make during period of alleged discrimination?

Wheeler Cowperthwaite, Providence Journal
·4 min read

WESTERLY − Washington Trust, the oldest bank in the country, recently agreed to a proposed settlement with the federal government over allegations of redlining between 2016 and 2021 in majority Black and Hispanic communities.

In all, Washington Trust, which is also traded on the Nasdaq stock exchange (WASH), has agreed to pay $7 million in grants to communities affected by its alleged misconduct and an additional $2 million in advertising and for classes.

But how much, during that time, did its top executives make? That information is public record and filed with the Securities and Exchange Commission and sent to the company's stockholders in annual proxy statements.

The accusations: Washington Trust settles over accusations it discriminated against Black, Hispanic borrowers

How much did Washington Trust's top executives earn in total?

From 2016 and 2021, the bank's top executives made $30 million in salaries, bonuses, stock options and "other" compensation.

That $30 million breaks down as:

  • $11.5 million in salaries

  • $8.4 million in stock

  • $5.8 million from the non-equity incentive plan

  • $1.3 million in "other" compensation

  • $127,714 in bonuses

Federal officials who brought the redlining case said no one person could be singled out for the bank's responsibility.

Internal and external reports cited that the bank could get in trouble for racial discrimination as early as 2011, but it wasn't until 2016, when the bank designated the entire state as its coverage area, that it allegedly violated federal discrimination laws. The bank denied all the accusations.

The bank was led by Joseph MarcAurele between 2010 and 2018, when he retired. Edward Handy III, who had been the chief operating officer and second in command, took over as CEO in 2018.

The Securities and Exchange Commission mandates the top five executive salaries be disclosed, including the pay of the CEO, the chief operating officer and the chief financial officer.

How much did they make?

Edward Handy III, CEO/chairman (2018 to present)

Total pay, 2016-2021: $8.6 million

Edward Handy III, a Brown University graduate, became the CEO after Joseph MarcAurele retired in March 2018. He came to Washington Trust in 2013 as chief operating officer and before that, worked at Citizens Financial Group (CFG), also known as Citizens Bank, for 18 years, according his biography on the Washington Trust website.

Joseph MarcAurele, CEO/chairman (2010 to March 2018)

Total pay, 2016-2018: $3.37 million

Joseph MarcAurele was the chairman and CEO from 2010 until he retired in March 2018, handing over leadership to Handy. Between 2010 and 2013, he was also the bank president. He started at Washington Trust in 2009 as the chief operating officer. Before that, he was the CEO of the Rhode Island and Connecticut branches of Citizens Bank, from 2007 to 2009. He started working at Citizens Bank starting in 1993, according his biography on the Washington Trust website.

Mark Gim, chief operating officer/president (2018 to April 2023), head of wealth management (2013-2018)

Total pay, 2016-2021: $6.8 million

Mark Gim was the president and chief operating officer for Washington Trust between 2018 and April 2023. He was promoted to chief operating officer position in 2018, filling Handy's position as Handy assumed the role of CEO. Previously Gim had been the senior executive vice president of wealth management and treasurer of the bank, and one of the top five executives, according to company news releases and proxy statements.

Ronald Ohsberg, chief financial officer/treasurer (2018 to present)

Total pay, 2018-2021: $2.6 million

Ronald Ohsberg is the senior executive vice president, chief financial officer and treasurer of the bank. Among his duties are asset and liability management, according to proxy statements. He joined the company in 2017 and, before that, worked at Linear Settlement Services and before that, worked for 12 years at Citizens Bank. Ohsberg replaced David Devault.

Kathleen Ryan, chief wealth management officer/executive vice president (2018 to present)

Total pay, 2018-2021: $2.7 million

Kathleen Ryan is the chief wealth management officer and executive vice president. She started with Washington Trust in December 2015 and before that, was a partner at the law firm Partridge, Snow & Hahn LLP for 17 years. She replaced Gim in 2018 in wealth management when he was promoted to chief operating officer.

James Hagerty, chief lending officer and executive vice president (2012 to present)

Total pay, 2016-2021: $3.6 million

James Hagerty is the chief lending officer an an executive vice president. He previously worked at Citizens Bank as a senior vice president between 2001 and 2012. He has been the chief lending officer since 2012, according to his LinkedIn profile.

David Devault, chief financial officer and vice chair (1998 to January 2018)

Total pay, 2016-2018: $2.4 million

David Devault was the chief financial officer and vice chair between 1998 and his retirement in January 2018. He was replaced by Ohsberg as chief financial officer. He joined the bank in 1986 as controller and became an executive vice president and the chief financial officer in 1998, according to the 2016 proxy statement.

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Reach reporter Wheeler Cowperthwaite at wcowperthwaite@providencejournal.com or follow him on Twitter @WheelerReporter.

This article originally appeared on The Providence Journal: Washington Trust executives made millions while feds say they redlined