By Jonathan Stempel

NEW YORK, Nov 24 (Reuters) - State Street Corp said on Tuesday it has granted retiring Chief Executive Ronald Logue a $6 million cash "transition award."
The amount will vest on Jan. 2, 2011 provided that Logue remains chief executive through March 1, 2010 and nonexecutive chairman through Jan. 1, 2011, the retirement dates that Boston-based State Street had previously announced.

In a regulatory filing, State Street said a board compensation committee approved the award to recognize Logue's "ongoing contributions in leading State Street" and his staying on as chief executive and nonexecutive chairman.
State Street, one of the world's largest asset custodians and institutional money managers, made the award after a year when many politicians, investors and governance critics have attacked financial services industry pay they found excessive.
A State Street spokeswoman declined to elaborate.
Logue was one of eight banking executives to testify before Congress in February, when lawmakers questioned decisions they say helped fuel the financial crisis and U.S. recession.
State Street received $2 billion of taxpayer funds from the Troubled Asset Relief Program, but has repaid the sum.
Chief Operating Officer Joseph "Jay" Hooley will succeed Logue as chief executive. Logue will be 64 at that time.
Last month, State Street said it will halve Logue's salary to $500,000 when he is no longer chief executive. In April, it said he had $25.3 million of accumulated pension benefits as of Dec. 31, 2008, and had $3 million of unvested stock awards.
Logue has been credited with reviving the fortunes of State Street, but he was also closely tied to the company's decision to move into riskier assets.
The company this month set aside another $250 million to cover claims by investors who lost money on risky mortgages, after using up more than two-thirds of a $625 million legal reserve set up in 2007.
State Street shares closed Tuesday down 18 cents at $41.56 on the New York Stock Exchange. They have fallen 15 percent since Logue became chief executive. Shares of many other U.S. banking companies have fallen much more.

(Reporting by Jonathan Stempel; Editing by Richard Chang, Phil Berlowitz) Keywords: STATESTREET/CEO (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net)

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