Updated
Updated · Kalkine Media · Aug 18
Franklin Financial Extends Charles Carroll Contract 3 Years, Sets 2.99x Change-in-Control Severance
Updated
Updated · Kalkine Media · Aug 18

Franklin Financial Extends Charles Carroll Contract 3 Years, Sets 2.99x Change-in-Control Severance

2 articles · Updated · Kalkine Media · Aug 18

Summary

  • August 17’s amendment resets President Charles B. Carroll’s employment term to three years, with automatic one-year renewals unless either side gives 180 days’ notice.
  • The filing also redefines severance pay by basing “Agreed Compensation” on Carroll’s highest annual base salary plus the average of his prior three years’ cash bonuses.
  • After a qualifying termination following a change in control, Franklin’s bank unit would pay Carroll a lump sum of up to 2.99 times that compensation within 30 days.
  • The package also continues or reimburses life, disability, medical and other welfare benefits for two years, while adding a limited gross-up and a Section 280G appraisal mechanism.

Insights

Why is Franklin Financial suddenly shielding its president's severance from severe IRS penalties with a specific 2.99x multiplier?
Does this sudden restructuring of executive change-in-control benefits secretly signal an impending merger for Franklin Financial?
Could a simple appraisal of a non-compete clause be the ultimate loophole for executives to dodge massive excise taxes?