Summary
First Citizens BancShares Inc. (FCNCA) reported under Item 5.02 that its wholly-owned subsidiary, First-Citizens Bank & Trust Company (FCB), has entered into new separation and death benefit agreements with two key executive officers: Lewis R. Holding and Frank B. Holding. These agreements supersede prior arrangements and provide for monthly payments for a period of ten years, commencing on or after January 1, 2011. The monthly payment amount for each executive is set at $45,609. In exchange for these payments, the officers have agreed to provide limited consulting services and to refrain from competing with FCB during the payment period. These new agreements, approved by FCB's Board of Directors, reflect increases compared to previous agreements and have specific provisions for death benefits and termination clauses. The filing also notes that FCB retains the right to terminate these agreements without obligation prior to the executive's separation from service.
Key Highlights
- 1New separation and death benefit agreements executed with Lewis R. Holding and Frank B. Holding by subsidiary FCB.
- 2Agreements provide for monthly payments of $45,609 to each executive for ten years post-separation or death.
- 3Payment commencement date is January 1, 2011, or a later elected date by the executive.
- 4Executives agree to provide limited consulting services and non-compete clauses during the payment period.
- 5These new agreements supersede prior ones and reflect increased payment amounts.
- 6FCB has the right to terminate the agreements without obligation prior to the executive's separation date.
- 7Agreements were approved by FCB's Board of Directors following review by the Compensation Committee.