Ex-BankAtlantic Executives’ Golden Parachutes Properly Capped

Five former executives of a bank acquired by BB&T Corp. in 2012 won’t receive severance payments that are significantly higher their former annual salaries, after the Eleventh Circuit on Tuesday rejected the bank’s lawsuit against the Federal Deposit Insurance Corp.

The FDIC reasonably determined that these proposed payments to former BankAtlantic Bancorp Inc. executives were impermissible golden parachutes under federal banking law, the U.S. Court of Appeals for the Eleventh Circuit ruled. It affirmed the FDIC’s decision to approve severance payments of no more than 12 months’ salary for the executives.

The bank argued that the golden parachute rules didn’t ...