South Financial Bank Settles Shareholder Suits Over CEO Pay

The South Financial Group has agreed to settle two lawsuits with shareholders and announced that former CEO Mack Whittle will retire from the South Carolina company’s board of directors.

The settlement totals $500,000. The company says it will pay $300,000 in cash covered by insurance and an additional $200,000 in South Financial common stock.

The Greenville News reported that papers the company filed with federal regulators say Whittle will reduce his retirement benefits to contribute $250,000 to the settlement.

The lawsuits were filed over Whittle’s original $18 million retirement package. The suits said Whittle’s benefits were too lucrative and his date to step aside was accelerated to help the bank get federal bailout money.

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Information from: The Greenville News,
http://www.greenvillenews.com