PNC Could Mean Payday for Riggs Executives

[seemslikeadream]

By Terence O'Hara
Washington Post Staff Writer
Friday, August 13, 2004; Page E02

Riggs National Corp. executives would receive more than $7 million in severance payments if PNC Financial Services Group Inc. buys Riggs early next year as anticipated.

Riggs chief executive and Chairman Robert L. Allbritton is slated to received $850,000. Riggs Bank President Lawrence I. Hebert, a longtime Allbritton family lieutenant, would receive $1 million.


The payments would result from the change-in-control agreements that are part of the executives' contracts. As part of Riggs's agreements, if senior officers are fired without cause within two years after a merger they are entitled to twice their most recent annual salary and bonus. Both Riggs and PNC executives have said they do not expect the company's senior management to continue with PNC after the purchase, which is slated for the first quarter of next year. PNC has offered to pay Riggs shareholders more than $700 million in cash and stock.

PNC agreed to buy the bank after it was fined a record $25 million by bank regulators for failing to abide by laws designed to prevent money laundering. Riggs is under a cease-and-desist order that must be lifted for the acquisition to go through.

more
http://www.washingtonpost.com/wp-dyn/articles/A61186-2004Aug12.html

Riggs bank execs to receive hefty severance despite laundering probe
by C.P. Pandya (bio)


Aug 12 - Senior executives at financially troubled Riggs National -- the bank that earlier this year was fined $25 million for a range of money-laundering violations -- are eligible to receive over $7 million in severance pay if they leave the company after its proposed sale to PNC Financial Services Group is completed.

Additionally, the executives could receive another $2.2 million cash from unvested stock options. The bank has been closing down most of its international banking operations as a result of ongoing government investigations into its transactions and ahead of the $779 million buyout by PNC. The closures, the costs of investigations and the fines left Riggs to post a $30 million net loss in the first six months of 2004.
more
http://newstandardnews.net/content/?action=show_item&itemid=815

[Tight_rope]

1. WTF......I'm so damn mad now.

A payoff for all their wonderful work in fucking destroying many countries.