First Niagara Financial (FNFG) in Buffalo is shelling out another six-figure sum for severance tied to an ousted executive.
The $38 billion-asset company disclosed in an exhibit to its quarterly filing with regulators that Daniel Cantara 3rd, its former chief banking officer, will receive a severance package valued at $1.6 million. Cantara lost his job as part of a January reshuffling under Gary Crosby, who had become president and chief executive a month earlier.
Cantara, who left First Niagara in February, will receive biweekly payments of roughly $43,500 for 18 months, an amount equal to his annual base salary plus 150% of his 2013 target bonus, the exhibit said. He is also eligible for up to $15,000 of reimbursement for outplacement services and legal fees.
First Niagara and Cantara also agreed that they would not pursue any legal actions tied to Cantaras ouster. Cantara also agreed to a wide-ranging noncompete agreement that will expire 12 months after his departure from First Niagara.
First Niagara promoted Cantara to chief banking officer in late 2012, when then-CEO John Koelmel was pursuing an aggressive acquisition strategy. Koelmel was fired in March 2013.
Koelmel, meanwhile, secured a severance package valued at roughly $2.9 million. He also received an incentive award worth more than $200,000 and reimbursement for $25,000 in legal expenses.