The Federal Home Loan Bank of Indianapolis said in a securities filing that its board had awarded its chief executive, Milton J. Miller, an enhanced severance agreement that would compensate him in case of a merger or reorganization.
The accord states that Miller "desires assurance that, in the event of any consolidation, change in control or reorganization of the bank, he will continue to have the responsibility and status he has earned."
Barbara Hembree, a spokeswoman for the Indianapolis bank, declined to discuss whether it was contemplating a merger with one of the other 11 regional home loan banks. However, she said that some other officers already had severance plans that would be triggered by a change in control.
The securities filing was made Monday.
Under his new plan, Miller would be entitled in certain situations to a payment equaling twice the average of his three preceding years' base salary, bonus and other cash compensation. The retirement plan also would be enhanced, and he would be reimbursed for accounting, legal and financial advisory fees.
