Summary
This 8-K filing by FIRST CITIZENS BANCSHARES INC /DE/ (FCNCA) on February 23, 2011, reports on new executive agreements entered into by its wholly-owned subsidiary, First-Citizens Bank & Trust Company (FCB). These agreements are designed to provide specified monthly payments to key executive officers and their beneficiaries upon their separation from service at an agreed-upon age or in the event of death. The new agreements supersede previous ones and reflect an increase in payment amounts. In exchange for these benefits, the officers have agreed to provide limited consulting services and abide by non-compete clauses during the payment period.
Key Highlights
- 1First-Citizens Bank & Trust Company (FCB) entered into new separation and death benefit agreements with five key executive officers.
- 2These agreements supersede prior arrangements and include increased monthly payment amounts.
- 3Payments are contingent upon separation from service at an agreed-upon age or death.
- 4Executives must provide limited consulting services and adhere to non-compete restrictions during the payment period.
- 5Payments cease if employment is terminated for reasons other than agreed-upon separation or death.
- 6FCB retains the right to terminate these agreements without obligation prior to the executive's separation or death.
- 7The agreements were approved by FCB's Board of Directors following a recommendation from its Compensation Committee.
Frequently Asked Questions
The primary purpose is to provide financial security to key executive officers and their beneficiaries upon their retirement at an agreed-upon age or in the event of their death. These agreements also secure limited consulting services and non-compete commitments from the executives in exchange for these benefits.
Payments are made only if the executive separates from service at an agreed-upon age or upon their death. If employment is terminated for any other reason, the agreement terminates, and no payments are made.
No, FCB may terminate an officer's agreement for any reason without obligation at any time prior to the executive's separation from service at an agreed-upon age or death. This provides the company with flexibility.
The officers covered are Frank B. Holding, Jr. (Chairman, CEO), Kenneth A. Black (VP, CFO), Edward L Willingham, IV (President), Carol B. Yochem (EVP), and Hope Holding Connell (Vice Chairman). The monthly payments range from approximately $11,750 to $33,056, depending on the officer.