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If Newcastle are taken over, he is entitled to three months' - and two years' compensation.
Mark Lake, a spokesman for the bank, declined to say whether that approach would be used for future years' compensation.
In those boom years, compensation in finance was 30percentto50percentcent higher than in the rest of industry.
Ms. Drew resigned immediately and is now expected to lose the equivalent of two years' compensation, an estimated $30 million, for her involvement in the fiasco.
If he dies or is disabled, the company will hand over $10 million at once, instead of three years' compensation in 36 monthly installments.
Mr. Watson's contract specified that if he was forced out, he was to be paid what amounts to three years' compensation, including the projected value of stock options.
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While the banks have made some efforts in recent years, compensations levels remain persistently high, prompting regulators to take further action.
Traditional recruiters take as much as 25 percent of the hire's first-year compensation.
That year, compensation at the bank averaged $212,000 for each employee.
He certainly did not need the $1-a-year compensation he was to be paid.
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