In Brief: Former SouthTrust CEO Exits Wachovia

Wachovia Corp. said Wallace D. Malone Jr. has retired as a vice chairman and director and is eligible for a hefty compensation package from several agreements with Wachovia and his former employer, SouthTrust Corp.

Mr. Malone, 69, retired today.

According to documents filed Monday with the Securities and Exchange Commission, Mr. Malone, the former chairman, president, and chief executive of SouthTrust, of Birmingham, Ala., is eligible to receive more than $100 million of payouts over the next few years.

He joined Wachovia's board when the $521 billion-asset Charlotte company acquired SouthTrust in November 2004.

In the filing, Wachovia said that Mr. Malone did not leave because of a disagreement with management. A company spokeswoman would not discuss the matter further and said Mr. Malone would not be available for comment.

Mr. Malone is entitled to annual termination payments of $6.67 million over the next five years under his employment contract with Wachovia, and $480,000 annually for the rest of his life as part of SouthTrust's deferred compensation plan, the filing said.

Under a deferred-compensation plan with Wachovia, he was granted restricted stock with a market value of $34.6 million; he is eligible to take a one-time payment for that stock on March 15, 2007. Under another plan with Wachovia, Mr. Malone will receive a lump-sum payment of $7.58 million. A deferred-compensation plan with SouthTrust entitles him to additional retirement benefits which are valued at $22.7 million but are subject to earnings adjustments.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER