Flagstar Bancorp Sued Over Disputed $16 Million Golden Parachute

Flagstar Bancorp’s former chief executive officer filed a lawsuit claiming he’s owed nearly $16 million in executive compensation and consulting fees.

Joseph Campanelli says he took over the struggling bank in 2009, “saved” it from insolvency during his three-year tenure, and was ultimately denied the retirement benefits promised in his employment agreement. Flagstar initially promised to seek regulatory approval for the payment under the federal rules governing “golden parachutes,” but it reversed course when current CEO Alessandro DiNello took over, Campanelli said in his lawsuit.

Campanelli says his employment agreement entitled him to about $14 million in retirement benefits upon ...