Ex-Atlantic Coast Bank CEO Loses Round Over Golden Parachute

The former president of Atlantic Coast Bank stumbled in his lawsuit seeking about $1.65 million under his supplemental executive retirement plan, when a federal magistrate judge in Florida recommended upholding a determination that the payout was a prohibited “golden parachute.”

The Federal Deposit Insurance Corporation reasonably determined that Robert Larison’s proposed payout was an impermissible golden parachute under federal banking law, Magistrate Judge Laura Lothman Lambert said in a report issued Wednesday.

Larison argued the payment didn’t satisfy the golden parachute requirement of being payable upon termination, because it could have been triggered by several events, including his 55th birthday.

Lambert disagreed, saying the “fact that plaintiff could have become entitled to the benefit in more than one way does not mean the FDIC’s determination was arbitrary or capricious.” She also pointed out that Larison first claimed benefits under the plan in connection with his 2012 termination.

Lambert said her analysis wasn’t affected by the fact that the bank’s designation as “troubled"—which triggered the relevant golden parachute restrictions—was lifted in 2015. The retirement plan in question was executed in 2011, when the designation was in place, and a subsequent change in status doesn’t render the FDIC’s decision arbitrary, she said.

Finally, Lambert recommended upholding the FDIC’s conclusion that the retirement plan didn’t qualify under an exemption for “bona fide” deferred compensation plans.

Larison worked for Atlantic Coast Bank for 29 years in various capacities, including as its president and chief executive officer. Following his 2012 termination, he said he was entitled to monthly payments of nearly $9,000 for 15 years under his executive retirement plan.

The case is pending before Judge Brian J. Davis of the US District Court for the Middle District of Florida, who can accept, reject, or modify Lambert’s recommendation.

Larison is represented by Delegal & Poindexter PA. Defendant Ameris Bank, which acquired Atlantic Coast in 2018, is represented by Adams & Reese LLP.

The case is Larison v. Ameris Bank, 2022 BL 252363, M.D. Fla., No. 3:20-cv-01140, magistrate report 7/20/22.