Associated cancels resort trip

GREEN BAY - Wouldn't it be nice to escape the winter blues with a trip to a lavish resort in sunny Puerto Rico?

About 100 Associated Bank employees planned to visit El Conquistador Resort and Golden Door Spa.

The bank was prepared to send its best workers there to reward them for a job well done.

"To be sending people down on a nice vacation when everybody else is cutting back just seems a little hypocritical that way," said Associated Bank customer Patti Germann.

In fact, Thursday that trip was canceled because people are upset. Just three months ago Associated Bank's parent company received $525 million from the federal government as part of a $700 billion bailout plan.

"Based upon the reaction we've had to it, we decided that it was best - so it's not a distraction for our business and colleagues - to cancel it," said Associated Banc-Corp CEO Paul Beideman.

The vacation may be off, but before he pulled the plug on it, Associated Banc-Corp CEO Paul Beideman defended the trip in a Milwaukee Journal Sentinel column.

Beideman said canceling the trip and disappointing their "high performers" just isn't warranted.

The CEO added unlike other banks accepting bailout money, his bank is making money.

Associated Banc-Corp reported a profit of more than $13 million in the fourth quarter of 2008.

Beideman told the Journal Sentinel, "There's a huge difference between Citibank losing $18.7 billion and buying a plane - or AIG flying its executives someplace after losing $42 billion - and us making money, funding all of our expenses, contributing our capital and rewarding our good people."

Thursday Beideman told FOX 11, "We felt given our facts it was a prudent thing to continue to do."

And some people we spoke with felt that way too.

"They want to treat their employees real nice, they want to send them over down there take this vacation there's nothing wrong with that," said Aleon Thomas of Green Bay.

Beideman also told the Journal Sentinel quote, "We took the capital, and let me say this very clearly, we didn't have to. We took it as an abundance of caution in what is a challenging environment."

The fact is the bank took it. And Richard Parins with the Brown County Taxpayers Association says when private entities accept government funding it always comes with strings attached.

"It's too bad for Associated or anyone else, but when they're going to accept funds, they should expect someone is going to comment. They have become in fact a shareholder of the bank and for that reason shareholders often will speak up and have their say," said Parins.

They did and as a result.

"We've got 100 disappointed associates," said Beideman, "but I would like to think they feel their management stood up for them. Having said that I understand and respect the reaction we've seen and hopefully people see we responded appropriately."

The employees selected for the recognition trip included personal bankers, customer service representatives and branch managers.

No word yet on if those employees will be rewarded in some other way now that the trip has been canceled.