Wachovia Corp. (NYSE: WB) Chief Executive Kennedy Thompson was living on borrowed time. The company, though, had a funny way of showing it.

In 2007, Thompson was not awarded cash incentives or performance-based stock to Thompson because things were going poorly. Or were they?

"The Compensation Committee considered that while 2007 performance did not meet expectations for reasons noted above, under Mr. Thompson's leadership, earnings per share growth and Wachovia's tangible return on equity have been at or above the median of its peer group for 2007 and for the 3- and 5-year periods ending December 31, 2007," the company said in its latest proxy statement.

The company's board showed its displeasure and granted him premium priced stock options valued at $8.2 million. His total compensation was more than $21 million. Thompson did not have an employment agreement with Charlotte-based Wachovia and therefore would "only" be eligible for a severance of $1.45 million based on his years of service as of December 31. But don't shed a tear for Thompson.

Since Wachovia's performance exceeded its peers for the three-year period ending December 31, 2006, Thompson received a stock award valued at $15 million. In 2005, he got a cash incentive award of $5 million and a stock award valued at $14 million, according to the proxy.

Remember that under Thompson's leadership, Wachovia's shares plunged more than 58%. As Bloomberg News notes, his credibility was "dented" after he said earlier this year that the company's $24 billion purchase of Golden West was "ill-timed." Furthermore, the bank reported a higher-than-expected first-quarter loss, cut its dividend by 41% and raised $8 billion.

Once again, shareholders lose while overpaid chief executives win. This is a disgrace.