First Busey Corporation (the “Corporation”) has announced changes to the compensation and benefits of Michael J. Maddox, in connection with the Agreement and Plan of Merger with CrossFirst Bankshares, Inc. Here are the specific details of the changes:
-
Compensation: Maddox's base salary, annual bonus, and long-term incentive awards will be reviewed periodically during the Specified Period, ensuring they are at least at the same level as those paid to the Executive Chairman of the Board.
-
Retention Award: Maddox's right to any severance pay has been terminated, and instead, the cash severance that would have been payable to him will be converted into a cash retention award, which will vest and be paid in equal annual installments on each of the three anniversaries of the Closing, subject to his continued employment.
-
Severance: In the event of a Qualifying Termination, Maddox will receive various benefits, including any earned or accrued annual bonus or long-term incentive award, a specified base salary for the remainder of the Specified Period, COBRA continuation premium, and reimbursement of outplacement counseling expenses.
-
Outstanding Equity Awards: Maddox's CrossFirst equity awards will be assumed and converted into equity awards of the Surviving Corporation, with certain conditions related to vesting and settlement in the event of a Qualifying Termination.
-
Non-Competition: Maddox is bound by restrictive covenants, including a non-competition clause for a specified period following his termination of employment, with certain exceptions related to owning securities and private equity fund employment.
It's important to note that these changes are subject to the terms and conditions outlined in the Agreement and Plan of Merger and the Employment Agreement between the parties. As a result of these announcements, the company's shares have moved -2.2% on the market, and are now trading at a price of $26.79. For the full picture, make sure to review First Busey's 8-K report.
