8-KLeadership ChangesExhibits & Filings

FIRST CITIZENS BANCSHARES INC /DE/ 8-K Report, Executive Changes (Feb 6, 2009)

Filed February 6, 2009For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

This Form 8-K filing by First Citizens Bancshares, Inc. (FCNCA) on February 6, 2009, primarily details a new separation agreement entered into by its wholly-owned subsidiary, IronStone Bank (ISB), with James M. Parker, Vice Chairman. The agreement outlines payments to Mr. Parker or his beneficiaries upon his separation from service under specific conditions, such as reaching an agreed-upon age or death. This new agreement supplements existing arrangements, increasing the total monthly payments to $21,422.17 for a period of ten years post-separation. In exchange for these payments, Mr. Parker has committed to providing limited consulting services and adhering to non-compete clauses for the duration of the payment period. The agreement also stipulates that payments will be made to his beneficiary or estate if he passes away while employed or before all payments are disbursed. Importantly, the agreement can be terminated by ISB without obligation under certain circumstances prior to Mr. Parker's separation from service at an agreed-upon age or death. The terms were approved by ISB's Board of Directors after a favorable recommendation from the Compensation Committee.

Key Highlights

  • 1IronStone Bank (ISB), a subsidiary of First Citizens Bancshares, entered into a new separation agreement with Vice Chairman James M. Parker.
  • 2The agreement provides for monthly payments of $2,954.75 for ten years post-separation, in addition to existing agreements.
  • 3Total monthly payments to Mr. Parker or his beneficiaries will be $21,422.17 for a period of ten years after separation.
  • 4Mr. Parker is obligated to provide limited consulting services and abide by non-compete clauses during the payment period.
  • 5Payments will continue to a beneficiary or estate if Mr. Parker dies while employed or before full disbursement.
  • 6ISB retains the right to terminate the agreement without obligation under certain circumstances prior to agreed-upon separation.
  • 7The agreement was approved by ISB's Board of Directors following a recommendation from the Compensation Committee.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a new separation agreement between IronStone Bank (a subsidiary of First Citizens Bancshares) and its Vice Chairman, James M. Parker. This agreement details compensation and conditions related to his future separation from service.

Under the new agreement, IronStone Bank will make monthly payments of $2,954.75 for ten years following Mr. Parker's separation from service. When combined with prior agreements, the total monthly payout will be $21,422.17 for a decade post-separation.

In exchange for the payments, Mr. Parker has agreed to provide limited consulting services to IronStone Bank and to not compete with ISB, as defined in the agreements, during the ten-year payment period.

Yes, if Mr. Parker's employment is terminated for reasons other than separation from service at an agreed-upon age or death, the agreements will terminate, and no payments will be made. Additionally, IronStone Bank may terminate the agreements for any reason without obligation at any time prior to Mr. Parker's separation from service at an agreed-upon age or death.