Banc One Corp. and First Chicago NBD Corp. expect to spend $1.25 billion to merge, including about $800 million on severance and other costs for employees who would be cut or shifting responsibilities, a regulatory filing revealed.
About $200 million would go to top managers as "change in control" provisions kick in at First Chicago and managers are compensated according to contracts.
First Chicago vice chairman David Vitale's package is worth $7.46 million; chairman Verne Istock's $5.78 million; vice chairman Thomas Jeffs' $3.87 million; and executive vice president Andrew Paine's $2.43 million, according to the filing with securities regulators on Monday.
The filing set Sept. 15 as the date for both companies' shareholders to vote on the merger, which is expected to be completed by yearend.
Investment bankers once again stand to make a tidy profit. Lazard Freres will receive $16.5 million and Goldman, Sachs & Co. $13.5 million for advising First Chicago, the filing shows. Merrill Lynch & Co. and Morgan Stanley would each receive $13.1 million once the deal is completed.