GSA Daily Staff Report
Published Feb. 12, 2010

The South Financial Group Inc. said Thursday that the compensation given to its Board of Directors has been cut in half, and two more directors have resigned.

Darla Moore announced her resignation from the board in December. On Thursday, South Financial told the Securities and Exchange Commission that Donald T. Heroman and William P. Brant also resigned, effective this month.

Heroman, the retired CFO of Equifax Inc. in Atlanta, joined the board in July, filling a vacancy created when former company Chairman and CEO Mack Whittle resigned from the board. Heroman’s term expired this year; he will not seek re-election.

Brant, a Florida attorney, had served on the board since 2001.

“Neither person resigned as a result of any disagreement,” South Financial stated in the filing with the SEC.

South Financial said it will review the size and composition of its Board of Directors with the expectation that the size of the board may be further reduced. After the most recent resignations, 11 people now serve on the company’s Board of Directors.

The Greenville-based holding company of Carolina First bank and Mercantile Bank in Florida, has reported eight consecutive quarterly losses amounting to $1.3 billion.

South Financial’s stock hit a new low of 38 cents per share this month, and the Nasdaq Stock Market has told the company it could be delisted if share prices don't improve.

“In recognition of the current environment and management compensation levels,” South Financial said it was reducing the annual retainers given to directors from $45,000 to $32,500. Board meeting fees were cut from $1,000 to $750.

Additionally, John C.B. Smith’s retainer for serving as chairman was cut from $50,000 to $20,000. Retainers for serving as audit committee chairman and compensation committee chairman each were cut in half to $12,500 and $10,000 respectively. The retainer for serving as risk committee chairman was cut from $15,000 to $10,000. Retainers for committee members also were reduced by half to $5,000.

South Financial’s board also voted to cut its pay last May. That amounted to a reduction of 50%.