8-KLeadership Changes

FIRST CITIZENS BANCSHARES INC /DE/ 8-K Report, Executive Changes (Apr 1, 2013)

Filed April 1, 2013For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

This 8-K filing by FIRST CITIZENS BANCSHARES INC /DE/ (FCNCA) primarily announces a key executive transition within its financial leadership. Kenneth A. Black, the company's principal financial officer, retired on March 31, 2013, after a long tenure since 1987. His departure marks the end of an era for the company's financial management. Effective April 1, 2013, Glenn D. McCoy has been appointed as the new principal financial officer, serving as Vice President and Chief Financial Officer for both the parent company and its bank subsidiary. Mr. McCoy brings a wealth of experience from previous roles, including CFO at RBC Bank (USA) and various positions at Wachovia Bank, N.A. The filing also details the terms of Mr. Black's retirement package, which includes salary continuation, unused paid time off, and substantial post-retirement payments contingent on his compliance with non-compete and non-solicitation clauses, as well as a release of claims.

Key Highlights

  • 1Retirement of long-time Chief Financial Officer, Kenneth A. Black, effective March 31, 2013.
  • 2Appointment of Glenn D. McCoy as the new Principal Financial Officer (CFO) effective April 1, 2013.
  • 3Glenn D. McCoy has extensive financial leadership experience, including CFO roles at RBC Bank (USA) and Wachovia Bank.
  • 4Mr. McCoy's annual salary as CFO will be $500,000, subject to board review.
  • 5Kenneth A. Black's retirement package includes salary continuation, unused PTO, and significant deferred payments contingent on compliance with covenants.
  • 6The retirement package for Mr. Black includes payments totaling $120,000 for non-compete/non-solicitation, $130,000 for claim release, and $16,000 for retiree health insurance.
  • 7Mr. Black will also receive monthly payments of $11,750 for ten years under a prior Executive Consultation, Separation from Service and Death Benefit Agreement.

Frequently Asked Questions

Glenn D. McCoy has been appointed as the new Principal Financial Officer and Chief Financial Officer, effective April 1, 2013.

Mr. McCoy has significant experience, having previously served as CFO of RBC Bank (USA) and in various roles at Wachovia Bank, N.A., including CFO of its Mortgage and Retail Credit Division. He also served as CFO of Carolina Condrey Group and was first employed by First Citizens Bank in December 2012.

Kenneth A. Black will receive his salary through March 31, 2013, plus unused paid time off. He will also receive $120,000 for agreeing to non-compete and non-solicitation clauses, $130,000 as a lump sum for releasing claims and agreeing to non-disparagement, and $16,000 for retiree health insurance for nine months. Additionally, he will receive monthly payments of $11,750 for ten years under a prior agreement, commencing October 2013.

No, the filing states that Mr. McCoy is not party to an employment agreement or other specific compensatory arrangements, other than his eligibility for the Bank's Section 401(k) savings plan and other standard employee benefits.